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, 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: 14 June 2021

The Most Important Thing Is … Investing Defensively

The Most Important Thing Is … Investing Defensively

Chapter:
(p.171) 17 The Most Important Thing Is … Investing Defensively
Source:
The Most Important Thing Illuminated
Author(s):

Howard Marks

Publisher:
Columbia University Press
DOI:10.7312/columbia/9780231162845.003.0017

This chapter examines a vital element for successful investing: defensive investing. The problem with investing is that the investor can’t simultaneously go all out for both profit making and loss avoidance. Each investor has to strike a reasonable balance between these two goals. The decision should be made consciously and rationally. The best way to put this decision into perspective is by thinking of it in terms of offense versus defense in sports, and especially tennis. This chapter explains how to invest defensively by referring to Charles Ellis’s article, titled “The Loser’s Game,” published in The Financial Analysts Journal in 1975. The point of Ellis’s article is that defense is an important part of every great investor’s game. Investment defense has two principal elements: the exclusion of losers from portfolios and the avoidance of poor years and, especially, exposure to meltdown in crashes. This chapter presents comments and insights from four renowned investors and investment educators.

Keywords:   defensive investing, offense, defense, sports, Charles Ellis, investors, investment

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 .