Links - 07/23/2024
“Why is it that stock prices rise and fall so much more than the economies and companies that underlie them? And why is it that market behavior is so hard to predict and often seems unconnected to economic events and company fundamentals? The financial ‘sciences’ – economics and finance – assume that each market participant is a homo economicus: someone who makes rational decisions designed to maximize their financial self-interest. But the crucial role played by psychology and emotion often causes this assumption to be mistaken. Investor sentiment swings a great deal, swamping the short-run influence of fundamentals. It’s for this reason that relatively few market forecasts prove correct, and fewer still are ‘right for the right reason.’” —Howard Marks
WHAT WE CAN LEARN FROM THE OIL MARKET - 1980 - by Gene Hoots (LINK)
Economic Moats Explained: What They Are & Why They Matter - Part I - by Todd Wenning (LINK)
Value After Hours: S06 E26: Adam Mead on The Financial History of Berkshire and Warren Buffett (video) (LINK)
Inside Mark Zuckerberg’s AI Era | The Circuit (video) (LINK)
Oaktree Behind the Memo Podcast: The Indispensability of Risk with Howard Marks, Bruce Karsh, and Maurice Ashley (LINK)
Related article: “Chess Teaches the Power of Sacrifice”
Related Memo: “The Indispensability of Risk”
Ain’t That a Kick in the Heeeeeead - by Ed Yong (LINK)
“The real measure of a man’s worth is how much he would be worth if he lost all his money.” —Harold J. Smith
“Be more concerned with your character than with your reputation, because your character is what you really are, while your reputation is merely what others think you are.” —John Wooden
“He who knows that enough is enough will always have enough.” —Lao Tzu