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The Most Important Thing IlluminatedUncommon Sense for the Thoughtful Investor$
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Howard Marks

Print publication date: 2013

Print ISBN-13: 9780231162845

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231162845.001.0001

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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: 19 September 2021

The Most Important Thing Is … Finding Bargains

The Most Important Thing Is … Finding Bargains

Chapter:
(p.122) 12 The Most Important Thing Is … Finding Bargains
Source:
The Most Important Thing Illuminated
Author(s):

Howard Marks

Publisher:
Columbia University Press
DOI:10.7312/columbia/9780231162845.003.0012

This chapter states that finding bargains is important in investment. In order to intelligently build a portfolio, one must buy the best investments, make room for them by selling lesser ones, and stay 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, along with the effect their inclusion would have on the portfolio being assembled. Sound investment is all about creating a list of investment candidates that meet the investor’s minimum criteria and then choosing the best bargains. The first step is to define the “feasible set” and to select investments from it by identifying those that offer the best ratio of potential return to risk, or the most value for the money. This chapter includes comments and insights from four well-known investors and investment educators.

Keywords:   bargains, portfolio, investment, value, price, risk, return, investors

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