“Relying to excess on the fact that something ‘should happen’ can kill you when it doesn’t. Even if you properly understand the underlying probability distribution, you can’t count on things happening as they’re supposed to. And the success of your investment actions shouldn’t be highly dependent on normal outcomes prevailing; instead, you must allow for outliers.” —Howard Marks
Links - 08/24/2023
Links - 08/24/2023
Links - 08/24/2023
“Relying to excess on the fact that something ‘should happen’ can kill you when it doesn’t. Even if you properly understand the underlying probability distribution, you can’t count on things happening as they’re supposed to. And the success of your investment actions shouldn’t be highly dependent on normal outcomes prevailing; instead, you must allow for outliers.” —Howard Marks