When asked to give a short answer to investing, his response was "At a price". Everything is worthwhile at a price. This is just one of the many quips that you can get from reading commentary and books by Howard Marks, the head of Oaktree Capital.
I have tried to read many investment books to obtain those special pearls of wisdom on how to be a better investor. Most times I have been disappointed. Reading the work of Marks will not disappoint. The Most Important Thing: Uncommon Sense for the Thoughtful Investor is one of the best investment books written.
Marks wants investors to think on two levels. His first level thinking is just the simple work of determining which stocks may look attractive, but the best investors move to a higher or second level thinking. Second level thinking is a deeper level which thinks about how the consensus views an investment, what is the chance of being right or wrong, what happens if the consensus is right versus your view. Above average returns are related to unconventional behavior or views that turn out to be correct. As he states, "investment success doesn't come from buying good things, but rather from buying things well."
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