I read Howard Marks’ “The Most Important Thing” last year and it really resonated with me. Lots of books teach you how to 'do' investing, but Marks teaches how to think about investing. One of the key messages that’s stuck with me has been that achieving outperformance isn’t easy; it requires hard work, and exceptional insight. Another ‘important thing’ worth remembering is that higher risk does not always equal higher returns – otherwise it wouldn’t be higher risk. Marks presents an alternative version of the familiar risk/reward chart that better reflects the potential outcomes as investors move up the risk scale – a timely reminder for those ‘hunting for yield’ in riskier asset classes. David Buckland, CEO of Montgomery Investment Management recently re-read Marks’ book following the Hearts and Minds conference and summarised seven of the key points here: (VIEW LINK)
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