Taking Advantage of the Mistakes of Others

Howard marks: Going into so called inefficient markets is not a license to make money. You have to be a person who mostly does things right and doesn't make too many mistakes, he says. He adds that in order for one side of a transaction to turn out to be a major success, the other side has to have been a big mistake. The key to success is to not have it ou usually, a buyer buys an asset because he thinks it's worth more than the price he's paying,. but the seller sells the asset because he think the price he'm getting exceeds its value. It's pretty safe to say one of them has to be wrong.