4th Quarter 2014
“There are old investors, and there are bold investors, but there are no old bold investors” — Howard Marks, from “The Most Important Thing"
To our clients and friends:
The above quote is taken from legendary investment guru, Howard Marks. The full title of his book is: “The Most Important Thing: Uncommon Sense for the Thoughtful Investor”. The message he sends is that investors who are truly successful prioritize the importance of addressing investment risk head-on. In designing a portfolio, they diversify their investments well. They often emphasize a “value investing” orientation.
We all know “investors” you meet at a cocktail party who ignore downside risk entirely. They may even act recklessly. Some of them stick their entire portfolio into a single stock, hoping to hit the lottery. Then when the market heads south, taking virtually every stock down with it, they wonder why the market has treated them so badly.