The Most Important Thing - by Howard Marks (Part 2)
This blog is in continuation with the previous blog , this blog contains the further chapters from one of the must read books. Here is the link to my previous post https://myweekendspot.blogspot.com/2020/02/the-most-important-thing-by-howard-marks.html Shuchi.P.Nahar Chapter 11 Contrarianism There’s only one way to describe most investors: trend followers. Superior investors are the exact opposite. Superior investing, as it requires second-level thinking a way of thinking that’s different from that of others, more complex and more insightful. By definition, most of the crowd can’t share it. Thus, the judgments of the crowd can’t hold the key to success. This is the core of Warren Buffett’s oft-quoted advice: “The less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs.” He is urging us to do the opposite of what others do: to be contrarians. The logic of crowd error is clear and almost mathematical:...