Monday, 8th August 2011

The most important thing

Written by George Traganidas Topics: Wealth Building

The most important thing

Mark Howard of Oaktree Capital Management wrote in one of his memos that a lot of people ask him what is the most important thing he has learned throughout his years of investing. After been asked this question a lot, he decided to compile a list of the answers he has given to various people, because he has given various answers. Here is the list:

  • The most important thing – above all – is the relationship between price and value.
  • The most important thing is a solidly based, strongly held estimate of intrinsic value.
  • The most important thing is investing defensively.
  • The most important thing is avoiding bad years.
  • The most important thing is facing up to the limits on your knowledge of the macro future.
  • The most important thing is being mindful of cycles (and where we stand in them).
  • The most important thing is contrarian behaviour.
  • The most important thing is patient opportunism.
  • The most important thing is saying what you’ll do, and doing it.
  • The most important thing is preserving investment flexibility.
  • The most important thing is refusing to manage too much money.
  • The most important thing is understanding the implications of market efficiency.
  • The most important thing is being leery of leverage.
  • The most important thing is acknowledging the impact of uncontrollable factors.
  • The most important thing is telling it like it is.
  • The most important thing is maintaining constructive personnel principles.
  • The most important thing is acknowledging the difficulty inherent in keeping a partnership intact, and going way out of your way to make it work.
  • The most important thing is having something you stand for.
  • Never think it’ll be easy.


Follow the practical way,
George

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