Howard Marks just released a new Investment Memo.
He has been writing these Memos for decades, and they're among the most valuable resources you can get your hands on.
This Memo discusses 6 Components of how to beat the Market.
Let's break them down 👇
He has been writing these Memos for decades, and they're among the most valuable resources you can get your hands on.
This Memo discusses 6 Components of how to beat the Market.
Let's break them down 👇
1. Pattern Recognition
The reason for investor sentiment and market cycles are complex and vary from year to year.
However, while the reasons differ, the underlying cyclicality is more predictable.
Study market history and engage in pattern recognition to benefit from that.
The reason for investor sentiment and market cycles are complex and vary from year to year.
However, while the reasons differ, the underlying cyclicality is more predictable.
Study market history and engage in pattern recognition to benefit from that.
2. Excesses and Corrections
Marks once used the idea of a pendulum to explain market behavior.
Once the pendulum starts swinging, it approaches the extremes sooner or later.
But when an extreme is reached, it inevitably swings back.
Eventually, resting in the middle.
Marks once used the idea of a pendulum to explain market behavior.
Once the pendulum starts swinging, it approaches the extremes sooner or later.
But when an extreme is reached, it inevitably swings back.
Eventually, resting in the middle.
3. "There's no price too high."
Making market predictions when the pendulum is somewhere in the middle is impossible.
At the extremes, on the other hand, it gets both easier and more profitable.
Watch out for signs of exuberance or depression.
They're quite easy to detect.
Making market predictions when the pendulum is somewhere in the middle is impossible.
At the extremes, on the other hand, it gets both easier and more profitable.
Watch out for signs of exuberance or depression.
They're quite easy to detect.
4. Successful Contrarianism
Being a contrarianism is a romantic idea, however the consensus is right most of the time.
It's at the above mentioned extremes when contrarianism pays off.
Being a contrarianism is a romantic idea, however the consensus is right most of the time.
It's at the above mentioned extremes when contrarianism pays off.
5. Resist your Own Emotionality
All of the discussed builds on you having your emotions in check.
Exuberance and depression have a very strong "pull power."
All news will focus on the current emotion, and staying rational and resisting the urge to join is everything but easy.
All of the discussed builds on you having your emotions in check.
Exuberance and depression have a very strong "pull power."
All news will focus on the current emotion, and staying rational and resisting the urge to join is everything but easy.
6. Illogical Positions
There are certain mantras that repeat themselves in times of extremes.
Exuberance: "There's no price too high."
Depression: "The time for stocks is over!"
Be on the lookout for these, and be aware, these opinions change quickly.
There are certain mantras that repeat themselves in times of extremes.
Exuberance: "There's no price too high."
Depression: "The time for stocks is over!"
Be on the lookout for these, and be aware, these opinions change quickly.
This is just a snapshot of the new Memo.
Marks also discusses 5 market calls he made over his career.
I highly recommend you read the full memo on @Oaktree Website!
Marks also discusses 5 market calls he made over his career.
I highly recommend you read the full memo on @Oaktree Website!
@Oaktree That's it for today!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
@Oaktree If you want more resources just like Marks Memos, check out my Website.
There are Free PDFs of:
- All Writings of Warren Buffett
- Many Shareholder Letters from Superinvestors
- Speeches from Charlie Munger
...
Here's the link:
danielmnke.com
There are Free PDFs of:
- All Writings of Warren Buffett
- Many Shareholder Letters from Superinvestors
- Speeches from Charlie Munger
...
Here's the link:
danielmnke.com
Loading suggestions...