The Memo by Howard Marks cover image

What Really Matters?

The Memo by Howard Marks

00:00

Security Pricing Is a Waste of Time

Macro events are unpredictable and not necessarily indicative of or relevant to companies' long-term prospects. Low-reported earnings can imply high future earnings, not continued low earnings. Because swings in psychology matter more in the near term than changes in fundamentals, most short-term trading is a waste of time. Most people treat stocks and bonds like something to trade, not something to own.

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