AI Snips
Chapters
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Episode notes
Ignore Short-Term Events
- Focus on long-term investments, not short-term predictions.
- Most investors cannot predict short-term events, so ignore them.
Security Prices and Expectations
- Security prices are not solely determined by events, but by investor reactions to them.
- These reactions depend on how events compare to expectations, making short-term prediction difficult.
Trading Sardines
- Howard Marks tells a joke about "
trading sardines" to illustrate a common misconception. - Many treat stocks as things to trade, not own, like betting on short-term price moves.