@FluentInQuality "Most investors' results will be determined more by how many losers they have, and how bad they are, than by the greatness of their winners." — Howard Marks, The Most Important Thing
In a world that’s increasingly geared toward short-termism and instant gratification, a tremendous advantage can be gained by those who move consistently in the opposite direction.
“Look at this piece of crap. A deal like this shouldn’t be able to get done, and the fact that it can get done means there’s something wrong in the market.”
2007, Howard Marks and his business partner Bruce Karsh right before the GFC.
SpaceX 🤓 🤓
“Financial disaster is quickly forgotten. When similar circumstances arise again, sometimes in only a few years, they are hailed by a new, often youthful, and always supremely self-confident generation as a brilliantly innovative discovery.”
— J.K. Galbraith, A Short History of Financial Euphoria (1990)
I have increased my LULU position by approximately 45% of available cash. Market fear over the newly appointed CEO, brand erosion, and recent execution misses is precisely what allows me to buy a quality business that is currently undervalued with a strong margin of safety. These issues are temporary, not structural, and will recede.