Thursday, 26 June 2014

The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful #Investor #investment #buffet #economics #eadership

By Howard Marks , Paul Johnson 
Bruce C. Greenwald 

Popular Highlights
  1. “Experience is what you got when you didn’t get what you wanted.”
  2. Second-level thinking is deep, complex and convoluted. The second-level thinker takes a great many things into account:
  3. Rule number one: most things will prove to be cyclical. Rule number two: some of the greatest opportunities for gain and loss come when other people forget rule number one.
  4. If prices in efficient markets already reflect the consensus, then sharing the consensus view will make you likely to earn just an average return. To beat the market you must hold an idiosyncratic, or nonconsensus, view.
  5. “There’s a big difference between probability and outcome. Probable things fail to happen—and improbable things happen—all the time.”



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