The Most Important Thing: Uncommon Sense for the Thoughtful Investor
Things can always get worse than people expect. We often measure risk as the “worst-case scenario” – the worst thing that’s happened in the past. But the future has a way of surprising us. Just because something hasn’t happened before doesn’t mean it can’t happen in the future. In investing, this principle is especially important. Markets are complex and unpredictable, and the past is not always a reliable guide to the future. Just because a particular investment or strategy has worked well historically doesn’t guarantee it will continue to do so. Howard Marks, in his book “The Most Important Thing,” emphasizes the importance of understanding and managing risk in investing. Marks argues that successful investing is not just about pursuing returns; it’s also about controlling risk and preparing for the unexpected.
Jun 22, 2024
