Howard Marks

Quotes are word for word from the source.

• Value Investing

  “Investment success doesn't come from "buying good things", but rather from "buying things well".”

  Our noteInvestment success depends on the purchase price rather than just asset quality.

• Market Cycles

  “Market optimism that this time is different is misguided and dangerous.”

  Our noteBelieving the market will behave differently this time is highly dangerous.

• Education

  “I started Wharton 55 years ago last month.”

  Our noteOver half a century of studying and practicing finance provides a deep historical perspective.

• Contrarian Investing

  “we made money steadily and safely investing in the worst public companies in America.”

  Our noteInvesting in highly unpopular companies can yield safe and steady returns if the price is right.

• Competitive Advantage

  “You have to have an advantage, a knowledge advantage, a skill advantage, if you're going to be one of the people who ends up on the positive side of that equation.”

  Our noteSucceeding in investing requires a distinct edge in either knowledge or analytical skill.

• Conviction

  “To be a good investor, you have to be confident, because you have to back things that are iffy and stay with them if they go bad.”

  Our noteGreat investors need the confidence to support uncertain assets and hold them through difficult times.

• Investing Difficulty

  “The things we're supposed to do are simple to describe. It's just not easy to do them (1) Better than other people, (2) Consistently, (3) Over time.”

  Our noteInvestment principles are simple to explain but incredibly difficult to execute better than others consistently over time.

• Psychology

  “A huge amount of people's preoccupation, in my opinion, is with avoiding regret. Embarrassment in front of others regret themselves.”

  Our noteMany people base their decisions primarily on avoiding personal regret and social embarrassment.

• Emotional Investing

  “And so the emotions tend to get people to buy, buy, buy at the top”

  Our noteHuman emotions frequently drive investors to aggressively buy assets at their peak prices.

• Market Peaks

  “at which point the top is reached and the second derivative goes negative”

  Our noteMarkets peak and begin to decline exactly when buying momentum is completely exhausted.