The 8 Best Books for Learning About Stocks inHis initial book should be most investors first read. Many will ask: First, even before The Intelligent Investor? I say yes, because The Most Important Thing will teach you how to think about investing. This next book also teaches us how to think about investing. Marks tells us how, why, and when we can improve our odds of success through mastering the market cycle. How to position ones portfolio given the possible outcomes is the heart of this book. This is not a get rich quick book but a sound long term investment philosophy that puts the odds heavily in the favor of the investor who studies valuation and investor psychology.
Mastering the Market Cycle: Getting the Odds on Your Side
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The logic behind this strategy is simple, at least for sites that hope to monetize their content in some way. If one writes articles that are irrelevant shortly after publication, the writer will always be on a treadmill of having to create brand new articles to generate any revenue. Since there are hardly any ads on this site, the topic of evergreen content is somewhat academic, but even aside from revenue generation, most writers gain satisfaction by creating content that stands the test of time. Perhaps my aversion to reading about cycles is due to years of listening to Warren Buffett state that he pays no heed to macroeconomic factors. Investors who have long followed Mr. Buffett and Charlie Munger seem to take it as an article of faith that they should diligently study companies, read primary sources such as annual reports, and stay true to traditional valuation metrics that have stood the test of time. We are not supposed to pay attention to market cycles and certainly not supposed to attempt to benefit from them.
These are the books that show up time and again in lists of books recommended by the pros themselves. This book is invaluable reading and has been since it was first published in Our good friend, Peter Bernstein mentioned this book several times in his excellent Capital Ideas which was published in Why the book is interesting today is that it still is important and the most authoritative work on how to value financial assets. He explains how to stalk tenbaggers and lays out the guidelines for investing in cyclical, turnaround, and fast-growing companies. Lynch promises that if you ignore the ups and downs of the market and the endless speculation about interest rates, in the long term anywhere from five to fifteen years your portfolio will reward you. And now this classic is as valuable in the new millennium as ever.
Mastering the Market Cycle Quotes
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Howard Marks, CFA. This book focuses on the third. It is harder to gain an edge over investors in judging the environment — where we are in the market cycle — than in the first two areas. But it is not impossible. Cycles are largely driven by human psychology and behavior.