As in this memo, Howard writes about the supply, demand and convertibles. Two principal factors determine the success of any investment; 1) Intrinsic Quality: Intrinsic quality of underlying business, how good the business is? Its better to invest in good companies than bad one, ceteris paribus. [Ceteris paribus is a favourite term of economists. It means “everything else being equal,”
» Read moreThe second memo from Howard Marks, named “First Quarter Performance” written in 1991, I am reviewing today, is very short but very important to understand from investor perspective. Howard starts this memo by saying “The mood swings of the securities markets resemble the movement of a pendulum.” The price of a stock, always behave like pendulum, its rotates from high
» Read moreIn Intelligent Investor, one of the great book ever written on value investing by Benjamin Graham, The preface written by Warren Buffett, in that preface Buffett says “To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What’s needed is a sound intellectual framework for making decisions and the ability to keep
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