In this episode, we cover The Most Important Thing by Howard Marks, focusing on investing applications (which we left out of Episode 004). This book lays out the philosophical underpinnings of value investing (the school of thought that Warren Buffett uses).

Time Stamps

[0:00:00 == Introduction and key themes]………… [0:03:35 ==  2nd-level thinking]………… [0:04:10 == Caveat on algorithms]………… [0:04:30 == The Little Book That Beats the Market by Joel Greenblatt]………… [0:05:15 == www.MagicFormulaInvesting.com]………… [0:06:30 == The Acquirer's Multiple by Tobias Carlisle]………… [0:06:35 == www.acquirersmultiple.com]………… [0:08:00 == These algorithms force 2nd-level thinking]………… [0:08:25 == The efficient market hypothesis (EMH)]………… [0:09:15 == Testing the EMH on FAANG stocks]………… [0:09:20 == Facebook]………… [0:10:20 == Apple]………… [0:11:00 == Amazon]………… [0:11:30 == Netflix ]………… [0:12:40 == Big Lots]………… [0:13:45 == Ollie's]………… [0:15:00 == Difference between price and value]………… [0:15:50 == Market efficiency ebbs and flows]………… [0:16:00 == Contrarianism]………… [0:16:25 == Waiting]………… [0:17:10 == Circle of Competence]………… [0:18:05 == The Right to Have an Opinion]………… [0:18:30 == Reasonable expectations]………… [0:21:00 == The whole point of the book]………… [0:21:45 == Howard Marks and Michael Burry on index bubbles]………… [0:23:00 == Basic starting spot: "buy low, sell high"]………… [0:23:15 == Avoid leverage, options, and short positions]………… [0:27:40 == More nuanced than "buy low, sell high"]………… [0:29:15 == I still like the book even though it doesn't talk valuation]………… [0:31:30 == Key assumptions of the book]………… [0:32:00 == Agency problems]………… [0:33:40 == Second-level thinking]………… [0:35:10 == Market Efficiency Fluctuates]………… [0:36:00 == You Can Be A Stock Market Genius by Joel Greenblatt]………… [0:37:45 == The Random Walk Hypothesis]………… [0:38:45 == Value vs. Growth]………… [0:39:50 == Value Equals Growth]…………  [0:40:10 == "Omaha Zoo" of Growth or VC]………… [0:41:40 == Being right isn't enough]………… [0:43:15 == Good assets =/= good investments]………… [0:44:10 == It's important not to conflate asset quality with investment quality]………… [0:44:40 == Contrarianism]………… [0:46:30 == Connection to Mike Pollack episode]………… [0:47:00 == Finding bargains]………… [0:47:10 == Necessary resources]………… [0:47:55 == Ray Dalio on correlation]………… [0:48:50 ==Patient Opportunism]………… [0:49:15 == Joel Greenblatt: 6 investable for every 50-70 looks]………… [0:50:10 == Knowing What You Don't Know]………… [0:50:30 == "I know" investors]………… [0:50:59 == Reasonable expectations]………… [0:53:00 == Support & Closing Gratitude]…………

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