Top positive review
Thankfully he kept repeating the message
Reviewed in Canada on December 25, 2019
I think this book has repetitive content. Not sure how often he talked about Mark Twain's quote on how 'the past doesn't repeat, but it often Rhymes'. The whole book was set up that way, perhaps not repeating, but often rhyming with what he wrote earlier on. He was like the preacher that gave the same sermon three Sundays in row and then afterwards was asked "Why do you keep repeating the same sermon?"
The preacher simply replied.."I will give keeping the sermon until everyone gets it!"
I will have to admit that I do not think that I fully did get 'it' (the explanations of the market cycle), in the beginning of the book, but by the end I did get message.
This is not the first lesson I received from Mr. Marks, I also appreciate the continued sermon on risk vs reward. He did write on it again in this book as well. As risk and reward is different at different stages of the cycle.
Higher risk does not equal greater reward, unlike what they taught him in school. In fact Michael Milken taught him the reverse lesson, that lower risk can equal greater reward. Mr. Mark then used this new perspective to buy distressed debt (junk bonds) at low prices to gain great gains for his funds. You have to ask yourself "At what price does it get so low that it reduces the risk?"
To give an example..In 2019, Oaktree Capital (Mr. Marks fund) bought 500,000 plus shares in a company for 10-20 cents each. He manages $200 Billion. The investment is an estimated $100,000. At that price, what is the risk? There is uncertainty with this company, it could go bankrupt and therefore he could lose the investment, but that would not make a dent in his portfolio. Whereas the upside is that the company has the potential to battle back, and it definitely is working hard. It might take ten years or more, but by then it could build itself back to a $10 per share company. It is nice to see a portfolio where the investor practices what he preaches.
Low risk vs High reward. Due diligence on the company and its potential future. Investing with a long time horizon.