My takeaways from Howard Marks' presentation

My notes from Howard Marks' presentation on 2-Mar-17:

• Definition of "great" companies is dubious. Very difficult to identify great companies over a very long period
 
• Investing is not a matter of buying good things, but buying things well (buying assets which are out of favour)
 
• Forecasting is not possible as the future is not knowable. Try to know the knowable. Focus on specific sectors, industries, companies
 
• The main decision to make at any point in time - whether to play defensive or offensive. You cannot play both at the same time.

• Low purchase price is more important than anything else (including quality of company)
 
• Have to think differently (variant perception) and better - need to have some knowledge different from everyone else
 
• Most investors behave pro-cyclically
 
• You need to have a philosophy and process that you can stick to even in most trying of times
 
• Most corrosive of emotions is to sit up and watch others make money
 
• Plan to survive the "worst day" in the market without having to sell. The challenge is we don't know what the "worst day" will look like, but can get an idea from the past.

• Hubris, ego, over-confidence are enemies of an investor
 
• Your approach needs to be consistent with your personality
 
• Turn cycles to your advantage
 
• Look at E/P and compare with interest rates to get a sense of overall market valuations

Overall, it was a great presentation with some very good Q&A. Thanks to Prof Bakshi for inviting me and hosting such a fabulous and memorable event.