Learning path

  • Learning Path : Phase I 0/29
    • Step 1: Investment Lesson: How Does The Stock Market Work
  • Learning Path : Phase II 0/35
    • Investment Guru: Howard Marks
  • Learning Path : Phase III 0/31
    • Book Summary : The Most Important Thing
  • Stockmarket Basics 0/4
  • Book Summaries 0/15
    • These are short summaries of the most valuable lessons taught from investing and trading books

  • Video Tutorials 0/7
    • These videos teach important topics that are relevant to the investment process and the stock market

  • Excel Video Tutorials 0/5
    • These videos demonstrate how to use Microsoft Excel to formulate basic spreadsheets, financial calculations and formulas for investment analysis

  • Stockeducate Library 0/5
    • These are the best stock market: Videos to watch, books to read, audio podcasts to listen to, and websites to explore

Investment Guru: Howard Marks

Howard Marks Biography:

  • Howard Marks a well respected and world-renowned investor and writer.
  • Marks graduated at the Wharton School in Pennsylvania before completing his masters in business administration at the University of Chicago.
  • Marks managed to achieve an average rate of return of 19% per year, which is extremely hard to achieve.
  • Marks is the co-founder and co-chairman of Oaktree Capital Management, and he is one of the largest investors of distressed securities.
  • Marks also aims to make returns with high yield investments, such as purchasing convertible securities and low-end debt products.
  • Marks uses the value investment strategy in the market, which is the same investment strategy as Warren Buffett and Benjamin Graham.
  • Marks has written several popular investment-related books, one being “The Most Important Thing: Uncommon Sense for the Thoughtful Investor”.
  • Marks is passionate and experienced with simplifying stock market principles into easy to understand information.
  • Marks has an estimated net worth of US$2.2B and achieved rank #374 on the Forbes rich list in 2019.


Howard Marks Quotes:

 

“Nothing goes in one direction forever”

 

“We must strive to understand the implications of what’s going on around us. When others are recklessly confident and buying aggressively, we should be highly cautious; when others are frightened into action or panic selling, we should become aggressive.”

 

“Believe me, there’s nothing better than buying from someone who has to sell regardless of price during a crash. Many of the best buys we’ve ever made occurred for that reason.”

 

“Investors with no knowledge of (or concern for) profits, dividends, valuation or the conduct of business simply cannot possess the resolve needed to do the right thing at the right time.”

 

“I should limit my efforts to relatively inefficient markets where hard work and skill would pay off best.”

 

“Well bought is half sold.”

 

“The power of psychological influences must never be underestimated. Greed, fear, suspension of disbelief, conformism, envy, ego and capitulation are all part of human nature, and their ability to compel action is profound, especially when they’re at extremes and shared by the herd. They’ll influence others, and the thoughtful investor will feel them as well. None of us should expect to be immune and insulated from them. Although we feel them, we must not succumb; rather we must recognise them for what they are and stand against them. Reason must overcome emotions.”

 

“The longer I’m involved in investing, the more impressed I am by the power of the credit cycle. It takes only a small fluctuation in the economy to produce a large fluctuation in the availability of credit, with great impact on asset prices and back on the economy itself.”

 

“The safest and most profitable thing is to buy something when no one likes it. Given time, it’s popularity, and thus it’s price, can only go one way: up.”

 

“There are two concepts we can hold to with confidence: – Rule No. 1: Most things will prove to be cyclical. – Rule No. 2: Some of the greatest opportunities for gain and loss come when other people forget Rule No. 1.”

 

“Inefficiencies – mispricings, misperceptions, mistakes that other people make – provide potential opportunities for superior performance. Exploiting them is, in fact, the only road to consistent outperformance. To distinguish yourself from the others, you need to be on the right side of those.”

 

“When things are going well and prices are high, investors rush to buy, forgetting all prudence. Then, when there’s chaos all around and assets are on the bargain counter, they lose all willingness to bear risk and rush to sell. And it will ever be so”

 

“The air goes out of the balloon much faster than it went in.”

 

“The desire for more, the fear of missing out, the tendency to compare against others, the influence of the crowd and the dream of the sure thing – these factors are near-universal. Thus they have a profound collective impact on most investors and most markets. The result is mistaken, and those mistakes are frequent, widespread and recurring.”

 

“Fear is an overdone concern that prevents investors from taking constructive action when they should.”

 

“There are two primary elements in superior investing: a) Seeing some quality that others don’t see or appreciate (and that isn’t reflected in the price), and b) Having it turn out to be true (or at least accepted by the market).”

 

“Thoughtful investors can toil in obscurity, achieving solid gains in the good years and losing less than others in the bad. They avoid sharing in the riskiest behaviour because they’re so aware of how much they don’t know and because they have their egos in check. This, in my opinion, is the greatest formula for long-term wealth creation.”

 

“I’d say the necessary condition for the existence of bargains is that perception has to be considerably worse than reality. That means the best opportunities are usually found among the things most others won’t do.”

 

“Value investors score their biggest gains when they buy an underpriced asset, average down unfailingly and have their analysis proved out.”

 

“The thing I find most interesting about investing is how paradoxical it is: how often the things that seem most obvious – on which everyone agrees – turn out not to be true.”

 

“Only a sceptic can separate the things that sound good and are from the things that sound good and aren’t. The best investors I know exemplify this trait. It’s an absolute necessity.”

 

“I think the sources of error as being primarily analytical/intellectual or psychological/emotional.”

 

“Inadequate due diligence leads to investment losses.”

 

“Patient opportunism – waiting for bargains – is often your best strategy.”

 

“The herd applies optimism at the top and pessimism at the bottom. Thus, to benefit we must be sceptical of the optimism that thrives at the top, and sceptical of the pessimism that prevails at the bottom.”

 

“Reason must overcome emotion.”

 

“It can require patience and fortitude to hold positions long enough to be proven right.”

 

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