Uncertainty itself is a rare certainty in investing. Tim’s corporate finance professor at Columbia once invited legendary investor Howard Marks, founder of Oaktree Capital, as a guest lecturer. Marks shared that “dealing with risk and understanding where we are in the cycle are really the two keys to success.” Market cycles, the booms and busts, present an ever-present risk to your portfolio. Each cycle may be different in detail, but…
August 1, 2023
Several men are in the locker room of a golf club. A cell phone on the bench rings and a manengages the hands-free speaker function and begins to talk. Everyone in the room stops to listen. Man: “Hello?” Woman: “Hi, Honey; it’s me. Are you at the club?” Man: “Yes, I am.” Woman: “I’m at the shops now and I’ve found this beautiful leather coat. It’s only $2000. Is it…
No one is born an Investment Wizard. Nature doesplay its part (i.e., Wizards all likely have at least average intelligence), but it is nurture that makes them exceptional investors. You do not need to be a genius to be good at something; you just need to focus and put in the work. Buffett’s business partner, Charlie Munger, puts it this way: “The only way to win is to work, work,…
June 28, 2023
In his book Outliers, Malcolm Gladwell introduced the concept of the “10,000 hours rule,” pointing out that The Beatles put in an estimated 10,000 hours of practice playing in Hamburg in the early 1960s, Bill Gates put in 10,000 hours of programming work before founding Microsoft, and the most talented violinists put in 10,000 hours of practice by the age of 20. By dedicating significant time to their studies, these individuals…
English