Marks quotes Swensen saying successful investing requires uncomfortably idiosyncratic positions against the crowd.
“successful investing requires the adoption of uncomfortably idiosyncratic positions. Everybody has the same influences, everybody thinks pretty much the same,”
Marks quotes Swenson that successful investing requires uncomfortably idiosyncratic positions; tomorrow's winners are today's losers.
“Everybody has the same influences, everybody thinks pretty much the same, everybody anoints the same winners and criticizes the same losers, and obviously tomorrow's winners are usually found on the pile of today's losers,”
Marks shares trader's wisdom that when it's time to buy, psychological conditions make you not want to.
“I came across a great quote within the last year from a guy who's a retired trader, When the time comes to buy, you won't want to.”
Marks says it's generally bad to buy what everybody loves and good to look at what everybody hates.
“in general, it's a bad idea to buy the things that everybody loves and it's a good idea to buy the things that everybody hates.”
Marks cites Buffett principle that imprudent market behavior should increase investor caution and worry.
“So when other people are acting imprudently and mindlessly and carefree, we should be worried.”
Marks reveals Bruce Karsh invested $450 million per week for fifteen weeks during the 2008 crisis.
“Bruce and I figured out that we should spend the money. He ran the fund in question and he bravely invested an average of $450,000,000 a week for the next fifteen weeks.”
Marks notes investors sell more when prices fall, opposite of normal behavior in every other walk of life.
“In every other walk of life, we buy more when things go on sale. In the markets, we sell more when things go on sale.”
Marks quotes Buffett: when others act less prudently, we must act more prudently in our own affairs.
“Buffett says most things best. He says, the less prudence with which others conduct their affairs, the greater the prudence with which we must conduct our own affairs.”
Marks quotes Swensen saying good investing requires adopting uncomfortably idiosyncratic positions.
“Dave Swenson used my favorite two word phrase that good investing requires the adoption of uncomfortably idiosyncratic positions.”
Marks quotes trader Wally Deemer: When the time comes to buy, you won't want to.
“And there was a guy named Wally Deemer, was an old time trader, who had some great quotes and he turned them into”
Marks wrote a memo titled The Limits to Negativism in October 2008 after Lehman's bankruptcy.
“I wrote a memo in October of o eight, after the global financial after the bankruptcy of Lehman, with the title, the limits to negativism. And there is such a thing as being too negative.”