Markets2011
The Most Important Thing
Howard Marks
Summarizes second-level thinking, risk management, margin of safety, cycles, and the role of psychology in investment outcomes.
Checklist
Do I have a rule to place decisions in cycle context?
Do I have a rule to manage position risk before seeking return?
Do I have a rule to separate signal from noise?
Do I have a rule to prepare for the thesis to fail?
Write down what would invalidate the thesis.
Set a review date before acting.