Book Review: The Most Important Thing By Howard Marks

Gregg and I attended the Value Investor Congress in Vegas last week. I downloaded a couple of books to read on the flights.  Let me just say that we highly recommend the book and is one of the best investment books I have read in years. The book is not a “how to analyze a company” book, nor does it have any “magic formulas”.  The main goal of the book is to show “how to think and how to deal with the psychological influences that interfere with investment thinking.” There are lots of investment books that talk about traits of successful investors and characteristics of stocks that perform well over time, but there are few books that deal will the other side of the investment equation, dealing with emotion in real time. This website is an attempt to do that by showing investors what we are thinking at the time we are building the portfolio. The book uses quotes from previous shareholder letters he wrote and expands on them. Other well-known investors such as Joel Greenblatt, Paul Johnson and Seth Klarman also make comments throughout the book.

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