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The Most Important Thing
Howard Marks · Passages from the same work, in order.
The Most Important Thing, Excerpt 1
As I meet with clients and prospects, I repeatedly hear myself say, “the most important thing is x.” And then ten minutes later it’s, “the most…
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Investing · Cognition · Health · Action · Modern investor letters
The Most Important Thing, Excerpt 2
Hopefully, if I offered to sell you my car, you’d ask the price before saying yes or no. Deciding on an investment without carefully considering…
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Wealth · Investing · Cognition · Decision · Modern investor letters
The Most Important Thing, Excerpt 3
As expressed by David Swensen of Yale, “. . . investment success requires sticking with positions made uncomfortable by their variance with popular…
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Investing · Cognition · Wealth · Health · Modern investor letters
The Most Important Thing, Excerpt 4
Warren Buffett constantly stresses “margin of safety.” In other words, you shouldn’t pay prices so high that they presuppose (and are reliant on)…
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Wealth · Investing · Modern investor letters
The Most Important Thing, Excerpt 5
Our goal is to generate performance that is average in good times (although we’ll accept more) and far above average in bad times. If in the long run…
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Wealth · Investing · Leadership · Human nature · Modern investor letters
The Most Important Thing, Excerpt 6
Ignoring cycles and extrapolating trends is one of the most dangerous things an investor can do. People often act as if companies that are doing well…
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Investing · Action · Leadership · Human nature · Modern investor letters
The Most Important Thing, Excerpt 7
At Oaktree we try to sit on our hands. We don’t go out with a “buy list”; rather, we wait for the phone to ring (while we do our research and…
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Wealth · Investing · Cognition · Action · Modern investor letters
The Most Important Thing, Excerpt 8
In our funds over the years, we’ve made numerous successful investments that weren’t foreseen when the funds were formed. I think the key to bridging…
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Investing · Wealth · Cognition · Growth · Modern investor letters
The Most Important Thing, Excerpt 9
I believe strongly that some markets are quite efficient, meaning the collective actions of informed, diligent investors tend to make assets in those…
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Philosophy · Investing · Cognition · Decision · Modern investor letters
The Most Important Thing, Excerpt 10
It also holds that since investors can’t add to returns through active management, the only way to increase returns is by accepting more risk. This…
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Investing · Decision · Wealth · Cognition · Modern investor letters
The Most Important Thing, Excerpt 11
Given the vagaries involved in the investment process – and they are legion – a thorough understanding based on high quality communications is key in…
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Investing · Modern investor letters
The Most Important Thing, Excerpt 12
We always have placed great emphasis on preventing turnover, and the results are visible – in the very small number of senior professionals who…
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Investing · Leadership · Growth · Action · Modern investor letters
The Most Important Thing, Excerpt 13
First, conflicts of demeanor or style can have a very negative effect on cohesiveness. In the bull market, the aggressive partner says, “That wet…
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Investing · Wealth · Leadership · Modern investor letters
The Most Important Thing, Excerpt 14
To be able to do all of these things simultaneously, it helps to have a set of guiding principles and a well-thought-out approach. With these you can…
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Investing · Cognition · Action · Leadership · Modern investor letters