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Navigating Investment Risks
This chapter explores the complexities of recognizing and managing risk in investing, emphasizing insights from Howard Marks on market cycles and investor psychology. The speakers discuss the challenges faced by investors, especially during price surges that create an illusion of low risk, underlining the importance of strategic decision-making in both bull and bear markets. By examining historical examples and investor profiles, the chapter illustrates that true investing skill is demonstrated by effective loss control and informed capital allocation during varying market conditions.