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#53 Howard Marks: Luck, Risk and Avoiding Losers

The Knowledge Project with Shane Parrish

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Financial Crisis and Excesses: continue investing

The financial crisis of 2008 resulted from excesses in the form of a willing suspension of disbelief, excessive faith in mortgages and mortgage-backed securities, and heavy and risky investments by financial institutions. This led to the bankruptcy of major institutions and culminated in the collapse of Lehman Brothers. Despite the uncertainty and fear of a financial meltdown, the speaker took the stance that it's impossible to predict and prepare for such an event, and the best course of action was to continue investing. Ultimately, the decision to invest during the crisis proved to be the right choice, as the financial world did not melt down, and the speaker's firm invested an average of 650 million a week for a total of ten billion in the last 15 weeks of 2008.

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