The Most Important Thing
by Howard Marks
Oaktree's founder on second-level thinking, the relationship between price and value, understanding and controlling risk, cycles, contrarianism, patient opportunism and the role of luck, drawn from his famous memos. It is thoughtful rather than tactical and is the book Buffett recommends for investing judgment.
Read it if…
you want to think about risk and cycles like a serious professional.
Skip it if…
you want a specific strategy; it is about judgment.
Three things you will actually use
- Price matters more than quality.
- Risk is permanent loss, not volatility.
- Cycles are certain; timing is not.
Do this first
Before your next investment, write what the consensus believes and why you think it is wrong.
Our verdict
Wise and measured; investing judgment.
Compare with other Money books
The Essays of Warren Buffett
Warren E. Buffett, edited by Lawrence A. Cunningham · Money
Buffett, organized and in his own voice.
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