AI Snips
Chapters
Transcript
Episode notes
From Nifty Fifty To High-Yield Bets
- Howard Marks recounts joining the industry in 1969 and the rise and fall of the Nifty Fifty stocks.
- He then describes moving into convertible and high-yield bonds and profiting from investing where few others looked.
You Must Be Different To Outperform
- Superior returns require departing from consensus because the market already prices collective views.
- If you don't have better insight than the average investor, expect average risk-adjusted performance.
Outperformance Is A Zero-Sum Trade
- All active bets among investors form essentially a zero-sum game, so winners imply losers.
- Active attempts to outperform carry the intrinsic risk of underperforming if your view proves wrong.