Howard Marks Oaktree Capital: It's all a Big Mistake

Howard Marks' latest memo: "It's all a Big Mistake" is an excellent read on the psychology of investor sentiment, the tendency to overshoot, or to improperly incorporate information into investment decisions.  Marks expands on a few points as to why investors tend to not buy assets that are cheap - or at least not enough of them:

• Bias or Close-mindedness
• Capital Rigidity
• Psychological Excesses
• Herd behavior

The link above is to Oaktree's secure website where the memo can be read in full or downloaded.   Marks is a excellent writer who possesses great skill and clarity in his memos which are sought out and read by his investing peers.  His recent book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor (Columbia Business School Publishing)is an excellent read that channels a clairvoyance nearly on par with Mr. Buffett.

"Active Management has to be seen as the search for mistakes."
-Howard Marks


FYI - I added a couple books to the "Worthwhile Investment Reading" page:

• The Most Important Thing: Uncommon Sense for the Thoughtful Investor (Columbia Business School Publishing) 
• There's Always Something to Do: The Peter Cundill Investment Approach
• Competition Demystified: A Radically Simplified Approach to Business Strategy 
• Value Investing: From Graham to Buffett and Beyond (Wiley Finance)