Another Howard Marks’ Memo – Inspiration from the World of Sports

 

On investing psychology

The market is made up of people, and to beat it you have to know them as well as you do the thing you are considering investing in.

While investing draws on knowledge of accounting, economics and finance, it also requires insight into psychology. Why? Because investors’ objectivity and rationality rarely prevail as much as investment theory assumes, and emotion and “human nature” often take over instead.

On forecasting

We have two classes of forecasters: Those who don’t know and those who don’t know they don’t know.


Paper: Inspiration from the World of Sports

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