
What Really Matters?
The Memo by Howard Marks
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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