
What Really Matters?
The Memo by Howard Marks
Security Pricing Is a Reliable Process
Inference is regarding expectations and sometimes be drawn from asset prices, but the inferred levels often aren't proved correct when the actual results come in. Security prices are highly susceptible to random and exogenous events that can swamp the impact of fundamental events. Macro events and the ups and downs of companies near-term fortunes are unpredictable and not necessarily indicative of or relevant to companies' long-term prospects.
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