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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.

Mental models

Model 1

Use this model to place decisions in cycle context.

Model 2

Use this model to manage position risk before seeking return.

Model 3

Use this model to separate signal from noise.

Model 4

Use this model to prepare for the thesis to fail.