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

Howard Marks

Print publication date: 2013

Print ISBN-13: 9780231162845

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231162845.001.0001

Show Summary Details
Page of

PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 20 May 2022

The Most Important Thing Is … Second-Level Thinking

The Most Important Thing Is … Second-Level Thinking

(p.1) 1 The Most Important Thing Is … Second-Level Thinking
The Most Important Thing Illuminated

Howard Marks

Columbia University Press

This chapter discusses an important requirement for successful investing: second-level thinking. Investing, like economics, is more art than science. One must remember how essential it is for one’s investment approach to be intuitive and adaptive rather than fixed and mechanistic. The definition of successful investing is doing better than the market and other investors. Would-be investors can take courses in finance and accounting, or receive mentoring from someone with a deep understanding of the investment process. But only a few of them will achieve the superior insight, intuition, sense of value and awareness of psychology that are required for consistently above-average results. Doing so requires second-level thinking. This chapter articulates the critical importance of second-level thinking to investment success and presents three examples illustrating its distinction from first-level thinking. It includes views and insights from four renowned investors and investment educators.

Keywords:   second-level thinking, investment, investors, psychology, first-level thinking

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 .