Howard Marks > Quotes

“I like to say, “Experience is what you got when you didn’t get what you wanted.”
― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor

“There are old investors, and there are bold investors, but there are no old bold investors.”
― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor

“Investment success doesn’t come from “buying good things,” but rather from “buying things well.”
― Howard Marks, The Most Important Thing: Uncommon Sense for the Thoughtful Investor

“Prices are too high” is far from synonymous with “the next move will be downward.” Things can be overpriced and stay that way for a long time . . . or become far more so.”
― Howard Marks, The Most Important Thing: Uncommon Sense for the Thoughtful Investor

“Being too far ahead of your time is indistinguishable from being wrong.” So”
― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor

“There’s a big difference between probability and outcome. Probable things fail to happen—and improbable things happen—all the time.” That’s one of the most important things you can know about investment risk.”
― Howard Marks, The Most Important Thing: Uncommon Sense for the Thoughtful Investor

“We have to practice defensive investing, since many of the outcomes are likely to go against us. It’s more important to ensure survival under negative outcomes than it is to guarantee maximum returns under favorable ones.”
― Howard Marks, The Most Important Thing: Uncommon Sense for the Thoughtful Investor

“What the wise man does in the beginning, the fool does in the end.”
― Howard Marks, Mastering The Market Cycle: Getting the odds on your side

“Investing is a popularity contest, and the most dangerous thing is to buy something at the peak of its popularity. At that point, all favorable facts and opinions are already factored into its price, and no new buyers are left to emerge.”
― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor

“Here’s the key to understanding risk: it’s largely a matter of opinion.”
― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor

“the three stages of a bull market”: the first stage, when only a few unusually perceptive people believe things will get better, the second stage, when most investors realize that improvement is actually taking place, and the third stage, when everyone concludes things will get better forever.”
― Howard Marks, Mastering The Market Cycle: Getting the odds on your side

“There’s only one way to describe most investors: trend followers. Superior investors are the exact opposite. Superior investing, as I hope I’ve convinced you by now, requires second-level thinking—a way of thinking that’s different from that of others, more complex and more insightful.”
― Howard Marks, The Most Important Thing: Uncommon Sense for the Thoughtful Investor

“Skepticism and pessimism aren’t synonymous. Skepticism calls for pessimism when optimism is excessive. But it also calls for optimism when pessimism is excessive.”
― Howard Marks, Mastering The Market Cycle: Getting the Odds on Your Side

“Warren Buffett tells us, “The less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs.”
― Howard Marks, Mastering The Market Cycle: Getting the odds on your side

“Voltaire: “The perfect is the enemy of the good.” This”
― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor

“The superior investor is mature, rational, analytical, objective and unemotional.”
― Howard Marks, Mastering The Market Cycle: Getting the Odds on Your Side

“As Sir John Templeton put it, “To buy when others are despondently selling and sell when others are greedily buying requires the greatest fortitude and pays the greatest reward.”
― Howard Marks, Mastering The Market Cycle: Getting the odds on your side

“There are three ingredients for success—aggressiveness, timing and skill—and if you have enough aggressiveness at the right time, you don’t need that much skill.”
― Howard Marks, Mastering The Market Cycle: Getting the Odds on Your Side

“Every once in a while, an up-or-down-leg goes on for a long time and/or to a great extreme and people start to say "this time it's different." They cite the changes in geopolitics, institutions, technology or behaviour that have rendered the "old rules" obsolete. They make investment decisions that extrapolate the recent trend. And then it turns out that the old rules still apply and the cycle resumes. In the end, trees don't grow to the sky, and few things go to zero.”
― Howard Marks, The Most Important Thing: Uncommon Sense for the Thoughtful Investor

“Buying something for less than its value. In my opinion, this is what it’s all about—the most dependable way to make money. Buying at a discount from intrinsic value and having the asset’s price move toward its value doesn’t require serendipity; it just requires that market participants wake up to reality. When the market’s functioning properly, value exerts a magnetic pull on price.”
― Howard Marks, The Most Important Thing: Uncommon Sense for the Thoughtful Investor

“Selling for more than your asset’s worth. Everyone hopes a buyer will come along who’s willing to overpay for what they have for sale. But certainly the hoped-for arrival of this sucker can’t be counted on. Unlike having an underpriced asset move to its fair value, expecting appreciation on the part of a fairly priced or overpriced asset requires irrationality on the part of buyers that absolutely cannot be considered dependable.”
― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor

“The biggest investing errors come not from factors that are informational or analytical, but from those that are psychological. Investor”
― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor

“Like so many other things in the investment world that might be tried on the basis of certitude and precision, waiting for the bottom to start buying is a great example of folly. So if targeting the bottom is wrong, when should you buy? The answer’s simple: when price is below intrinsic value.”
― Howard Marks, Mastering The Market Cycle: Getting the odds on your side

“Everything you needed to know in the years leading up to the crash could be discerned through awareness of what was going on in the present.”
― Howard Marks, The Most Important Thing: Uncommon Sense for the Thoughtful Investor

“Risk means uncertainty about which outcome will occur and about the possibility of loss when the unfavorable ones do.”
― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor

“It’s frightening to think that you might not know something, but more frightening to think that, by and large, the world is run by people who have faith that they know exactly what’s going on.”
― Howard Marks, The Most Important Thing: Uncommon Sense for The Thoughtful Investor

“History doesn’t repeat itself, but it does rhyme.”
― Howard Marks, Mastering The Market Cycle: Getting the Odds on Your Side

“people should like something less when its price rises, but in investing they often like it more.”
― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor

“Once in a while, however, the future turns out to be very different from the past. It’s at these times that accurate forecasts would be of great value. It’s also at these times that forecasts are least likely to be correct. Some forecasters may turn out to be correct at these pivotal moments, suggesting that it’s possible to correctly”
― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor

“An accurate estimate of intrinsic value is the essential foundation for steady, unemotional and potentially profitable investing.”
― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor