“The three most common investor mistakes are: Trying to predict the future, assuming trends will continue forever, and making emotional decisions.”

That’s from the legendary investor Howard Marks, who sat down with the hosts of the “My First Million” podcast to discuss his long and successful career. It’s an insightful conversation that underscores how much of investing is a matter of understanding human behavior, not just number crunching.

Some takeaways:

• Risk comes from how people behave, not from the companies themselves [02:26]
• Think about your portfolio in terms of a mix of aggressive and defensive assets [10:18]
• History does not repeat itself, but it does rhyme… Patterns in human behavior are key to spotting market cycles [17:16]

Ignore the text on the image below. Howard Marks sharing 79 years of Investing Wisdom in 55 minutes is a real gem…

#Investing #BehavioralFinance #Business #Economy #Markets