: The "second-level thinker" asks, "Everyone thinks this is a great company, but is it as great as they think? Is the price too high for the actual value?".
In the late 1960s, a young student at the found himself at the "ground zero" of modern finance theory. Howard Marks , who would later co-found Oaktree Capital Management , spent decades refining what he calls "uncommon sense"—a philosophy that eventually became his acclaimed book, The Most Important Thing .
Most people think in a straight line: "This is a great company, I should buy the stock." Marks calls this . He argues that because everyone else sees the same "great company," the price is already high, leaving no room for profit. The most important thing: uncommon sense for th...
: Success comes not from being right, but from being right and different from the consensus. The Pendulum and the 2000 Tech Bubble
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: No asset is so good that it can't be overpriced, and none is so bad it can't be a bargain at the right price.
: When the bubble burst, those who ignored risk were destroyed. Marks’s defensive investing strategy—prioritizing the avoidance of losses over the pursuit of maximum gains—allowed him to preserve capital while others lost everything. The Core Lessons of Uncommon Sense Howard Marks , who would later co-found Oaktree
: To achieve superior results, you must have the courage to buy when others are fearful and sell when others are greedy.
