Quote for the Week
All of these things are about balance. If you assume you know nothing, you can’t function. If you think you know everything, you’re going to get in trouble. You have to strike a balance. And hopefully, it’s an appropriate balance.
Think about confidence. If you’re an investor, if you don’t have confidence, then every time you buy something, if it goes down, you’re going to sell it because you’re afraid it’s going to go down more. And you’re going to be an abject failure. You have to have confidence.
If you buy something and it goes down, you have to reassess your thesis. And if it’s intact, you have to buy more or you can’t be great. But on the other hand, if you have hubris and you feel you can’t possibly be wrong and every time something goes down you blindly double down, then you’re probably going to get into trouble and maybe be asked to leave the industry. So, you have to have this balance, confidence but not overconfidence. Humility, but not over-humility. — Howard Marks (source)
From the Archives
Last Call
- What is the Behaviour Gap and How Can Investors Close it? – Behavioural Investment
- You are What You Won’t Do for Money – R. Holiday
- The Workload Fairy Tale – C. Newport
- Mutual Funds: Death is a Drag – Basis Pointing
- Passive Aggressive: The Increasing Risks of Passive Dominance (pdf) – Research Affiliates
- Gamblemerica: How Sports Betting Apps Rewired a Generation’s Relationship to Risk – Kyla’s Newsletter
- ‘Radical Uncertainty’ and Trump’s On-again, Off-again Tariffs – Behavioral Scientist
- How Common is Multiple Invention? – Construction Physics
- The Weekly World News Version of the Future – S. Godin