HOWARD MARKS - The Most Important Thing
Howard Marks, the chairman and cofounder of Oaktree Capital Management, is renowned for his insightful assessments of market opportunity and risk. After four decades spent ascending to the top of the investment management profession, he is today sought out by the world's leading value investors, and his client memos brim with insightful commentary and a time-tested, fundamental philosophy. Now for the first time, all readers can benefit from Marks's wisdom, concentrated into a single volume that speaks to both the amateur and seasoned investor. Read More.
The Real Common Sense Things Investors Should Understand
#1 THE EXPONENTIAL FUNCTION
- It is mathematically impossible for finite physical economic objects to grow forever; the last logical default event is collapse
#2 THE CONSEQUENCES OF NET PRESENT VALUE MATHMATICS ON FINANCIAL ASSET VALUES
Put simply, when interest rates double then
most asset values shall be reduced by up to 50% based on this automatic and absolute calculation.
Combined, these absolute determiners will unleash much than the Biblical Four Horsemen onto makets, economies and physical activities.
The investment game ends with the BEARS declaring absolute and complete victory . Physicaly and mathmatically it is "UTTERLY IMPOSSIBLE" for it to end in any other way
Hence, as Voltaire once wisely remarked...
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| And yet despite this profound historical revelation, it remains self-evident that we still collectively suffer from this common shortcoming, as we march blindly towards our kind's non-negotiable mathematical destiny. "To be forewarned, is to be forearmed" |
