The most dangerous thing is to buy something at the peak of its popularity. At that point, all favourable facts and opinions are already factored int… - Howard Marks
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The most dangerous thing is to buy something at the peak of its popularity. At that point, all favourable facts and opinions are already factored into its price and no new buyers are left to emerge
Howard Stanley Marks (born April 23, 1946) is an American investor and writer. He is the co-founder and co-chairman of Oaktree Capital Management, the largest investor in distressed securities worldwide.
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Also Known As
Alternative Names:
Howard Stanley Marks
•
Howard S. Marks
o In bubbles, infatuation with market momentum takes over from any notion of value and fair price, and greed (plus the pain of standing by as others make seemingly easy money) neutralises any prudence that might otherwise hold sway.
If one is approached with a deal predicated on cycles having ceased to occur, remember that invariably that’s a losing bet.
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This paradox exists because most investors think quality, as opposed to price, is the determinant of whether something's risky. But high quality assets can be risky, and low quality assets can be safe. It's just a matter of the price paid for them...Elevated popular opinion, then, isn't just the source of low return potential, but also of high risk.
