The Most Important Thing by Howard Marks
Module Units
- 1. Introduction
- 2. Second-Level Thinking
- 3. Understanding Market Efficiency
- 4. Value
- 5. The Relationship Between Price And Value
- 6. Understanding Risk
- 7. Recognizing Risk
- 8. Controlling Risk
- 9. Being Attentive To Cycles
- 10. Awareness Of The Pendulum
- 11. Combating Negative Influences
- 12. Contrarianism
- 13. Finding Bargains
- 14. Patient Opportunism
- 15. Knowing What You Don’t Know
- 16. Having A Sense For Where We Stand
- 17. Appreciating The Role Of Luck
- 18. Investing Defensively
- 19. Avoiding Pitfalls
- 20. Adding Value
- 21. Pulling It All together
Controlling Risk
Risk control is invisible in good times. Risk is not observable but loss is. The absence of loss does not mean the portfolio was safely constructed.
Fundamental risk reduction can provide the foundation for an extremely successful investing experience.
There is an important distinction between risk control and risk avoidance.
Risk control is the best route to loss avoidance. Risk avoidance is likely to lead to return avoidance as well.
Strive for risk intelligence.
About the Author

Jeremy Silva
Jeremy Silva lives near San Francisco with his wife and son. He is a writer, blogger, and personal investor. He is passionate about education, personal development, project management, and investing. His blog has over 100 book summaries on many topics including investing, self-help, and business. You can click on the link to read some interesting book summaries on Jeremy’s website (https://jsilva.blog/book-summaries/).
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