Howard Mark’s recent letter views the market as likely being at a risky stage and assesses this as a time to spend analyzing and understanding all the activity that is occurring (thinking versus doing). I concur with his current approach. If the tide goes out as Buffett says, “You can see who is without swimming shorts”. Now I like the beach, but Jacksonville isn’t the Riviera. I prefer a nice pare of swim trunks!
I’ve always found good investing goes hand in hand with a strong desire to learn new things and understand different concepts. The development of our understanding of an ever changing environment is never easy or fast. If someone is looking for the “get rich quick” program, they often leave their “flanks” open. While good returns can be achieved with solid and thoughtful analysis over time, a quick and high return goes hand in hand with a very high potential for negative or below average returns.
Given all this, I’m keeping my focus on other things to stop myself from “shooting myself in the foot”. That said, I’m working on replacing my car’s heater core and re-sodding my lawn. Lots to learn on both accounts, and… it keeps my mind busy. By being busy, I’m protecting myself from making unwise investments. Cinch bugs can eat up Saint Augustine grass faster than a bad investment eats up capital.
Be smart, be well-read, be aware and be successful.
