Jump to ContentJump to Main Navigation
The Most Important ThingUncommon Sense for the Thoughtful Investor$
Users without a subscription are not able to see the full content.

Howard Marks

Print publication date: 2011

Print ISBN-13: 9780231153683

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231153683.001.0001

Show Summary Details
Page of

PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 25 September 2021

The Most Important Thing Is … Finding Bargains

The Most Important Thing Is … Finding Bargains

(p.100) 12 The Most Important Thing Is … Finding Bargains
The Most Important Thing

Howard Marks

Columbia University Press

This chapter presents a further requirement for successful investing: finding bargains. The process of intelligently building a portfolio consists of buying the best investments, making room for them by selling lesser ones, and staying clear of the worst. This process consists of a list of potential investments, estimates of their intrinsic value, a sense for how their prices compare with their intrinsic value, and an understanding of the risks involved in each, as well as the effect their inclusion would have on the portfolio being assembled. Sophisticated investors often create a list of investment candidates that meet their minimum criteria, and from those they choose the best bargains. Buying a good one generally means the price is low relative to value, and potential return is high relative to risk. This chapter explains what makes price low relative to value, and return high relative to risk, and where to find underpriced assets.

Keywords:   bargains, portfolio, investment, price, value, risk, return, underpriced assets

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .