32 Quotes by Howard Marks

Voltaire: “The perfect is the enemy of the good.” This.

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.

The best foundation for a successful investment – or a successful investment career – is value. You must have a good idea of what the thing you’re considering buying is worth. There are many components to this and many ways to look at it. To oversimplify, there’s cash on the books and the value of the tangible assets; the ability of the company or asset to generate cash; and the potential for these things to increase.

The process of intelligently building a portfolio consists of buying the best investments, making room for them by selling lesser ones, and staying clear of the worst.

If everyone likes it, it’s probably because it has been doing well. Most people seem to think that outstanding performance to dates presages outstanding future performance. Actually, it’s more likely that outstanding future performance to date has borrowed from the future and thus presages subpar performance from her on out.

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.

The most dangerous thing is to buy something at the peak of its popularity. At that point, all favourable facts and opinions are already factored into its price and no new buyers are left to emerge.

There’s a big difference between probability and outcome. Probable things fail to happen – and improbable things happen – all the time.” That.

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.