Everybody’s doing it

In one of his memos at Oaktree Capital, Howard Marks refers to the market as a pendulum swinging between greed and fear. That at any given time, the pendulum i.e. the general consensus tends to be either too greedy or too fearful, and it is when the pendulum is at its fearful extreme that the value investor comes into her own to make intelligent buys. This will sound familiar to most investors. “Mimicking the herd invites regression to the mean” – Charlie Munger “Be fearful when others are greedy and greedy when others are fearful” – Warren Buffett The point of this post is

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