Mr. Marks states that when he was attending client meetings over the years he noticed a pattern. He would say in one meeting that that such and such was the most important thing about investing and in later meetings he found himself referencing other items that he titled the most important thing to understand. Upon reflection about this pattern he decided to write a memo in July of 2003 that covered all these critical areas in his investing philosophy.
This new book expands upon the ideas he covered in that original memo. Topics that are covered include: market efficiency, value, risk, investment cycles, contrarianism, finding bargains, patient opportunism, circle of competence, luck, avoiding pitfalls, etc... In short all the topics that a focus investor needs to understand and be able to place, and use, in their own mental models.
What does Mr. Marks want his readers to gain from his book? Here are his own words from the introduction of the book:
"I didn't set out to write a manual for investing. Rather, this book is a statement of my own investment philosophy. I consider it my creed, and in the course of my investment career it has served like a religion. These are the things I believe in, the guideposts that keep me on track. The messages I deliver are the ones I consider the most lasting. I'm confident their relevance will extend beyond today.
You won't find a how-to book here. There's no surefire recipe for investment success. No step-by-step instructions. No valuation formulas containing mathematical constants or fixed ratios - in fact, very few numbers. Just a way to think that might help you make good decisions and, perhaps more important, avoid the pitfalls that ensnare so many.
It's not my goal to simplify investing. In fact, the thing I most want to make clear is just how complex it is. Those who try to simplify investing do their audience a great disservice. I'm going to stick to general thoughts on return, risk and process..."
Mr. Marks has succeeded in his goals in a brilliant manner. There is, quite simply, an incredible amount of wisdom between the covers of his book and an investor is doing them a disservice if they don't read, and re-read, this book. I will be placing it on my shelf right next to the great investments classics of Security Analysis, The Intelligent Investor, the Berkshire Hathaway annual reports, and Margin of Safety. Quite simply I can't recommend it highly enough.
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This book is a rare Gem! Even Warren Buffett agrees. I’m transfixed, life changer. Foundational.
To all value investors, here is that rare Gem, something everyone should read as 2021 begins! The clarity and the wisdom that it presents is amazing. When I read Warren Buffets recommendation for this book I knew it was going to be an extremely valuable read, and I wasn’t disappointed. Howard Marks is the real deal. This book is for anyone who attempts to put the odds of risk in their favor as much as possible, and as much as can be done knowing the uncertainty of looking into the future. Book is written with such rational reason and balance, not with hype or get rich undertones. Some reviews say that it is repetitive, I strongly disagree! Anyone who invests, or is in business, HAS to have a strong sense of WHO HE IS. Everyone must have cornerstones to their business strategy and his cornerstones are so foundational, that he so generously shares with us, you can follow his thinking, I'm sure its the exact same as he evaluates any given investment.These precious principles are exactly where he starts his evaluations. This should be an absolute corner stone of anyone’s investment foundational thinking.Also this wisdom is FULLY transferable into my profession which is commercial real estate. I like to tell people that my business is risk evaluation when they ask what I do. In effect, My business amounts to nothing more than risk evaluation. The similarities are astounding.
Top reviews from other countries
Michael Kurkdjian
An excellent common sense investing book a lot of information on how to get better
Reviewed in Canada on February 21, 2023
Robert ‘Bob’ Macespera
A superb lesson on investing
Reviewed in the United Kingdom on February 20, 2023
