Why It Ranks #62
The best book on investment thinking since The Intelligent Investor. Marks writes with the clarity and humility of someone who has managed billions through multiple market cycles, and his framework for understanding risk is unmatched.
The Review
Howard Marks is the co-founder of Oaktree Capital Management and the author of legendary investor memos that Warren Buffett reads first thing when they arrive. The Most Important Thing distills Marks's investment philosophy into 21 chapters, each covering something he considers 'the most important thing' in investing — from understanding risk (it is not volatility, it is the probability of permanent loss) to the importance of second-level thinking to the dangers of overconfidence.
Key Takeaways
- 1Second-level thinking: the crowd thinks X, so I should think about what happens when everyone acts on X
- 2Risk is not volatility — it is the probability of permanent capital loss
- 3You cannot predict the future, but you can prepare for a range of outcomes
- 4The most dangerous thing in investing is the belief that there is no risk
Fun Facts
- •Warren Buffett said 'When I see memos from Howard Marks in my mail, they're the first thing I open and read'
- •Oaktree Capital manages over $170 billion in assets
- •The Illuminated edition includes commentary from Joel Greenblatt, Seth Klarman, and other investing legends
Book Details
The Most Important Thing by Howard Marks
Pages
200
Goodreads Rating
4.23/5
Copies Sold
500K+
First Published
2011
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