Howard Marks is a very successful writer, speaker, thinker, and money manager.  He is Co-Chair of Oaktree; you can read his impressive bio here.

We think you need to hear this clip because it is one of the better examples of all time, in our humble opinion, illustrating why taking the long view is likely the winning approach.

There is no need to swing for the fences to be a successful investor. It’s actually the opposite.

Enjoy this classic clip from Howard Marks’ interview with Barry Ritholtz on Bloomberg’s Masters In Business from 2019.

*If you want the full interview, you can find it here.

This year, I’m grateful for Diversification. Diversification is the only free lunch in investing. Let me repeat that. Diversification is the only free lunch in investing. As an investor, it allows you to dramatically reduce the range of possible outcomes in your investment portfolio, thereby making it easier to reach your financial goals. The range of performance of individual US companies this year was extremely wide and volatile. Think of it as a roller coaster with huge and frequent ups and downs. By diversifying, you were able to avoid some possible very negative outcomes. The video below provides a nice visual of the performance of the S&P500 year-to-date and gives an example of how increasing diversification, in this case by adding in small-cap companies, can help smooth the ride.

Video created by Jan Varsava.

John M. Jennings, JD, President and Chief Strategist of St. Louis Trust & Family Office (a firm we like and respect) and regular contributor of rockstar content, shares three rules to follow during periods of market volatility. For most, they will sound like familiar “Take the Long View” advice. In fact, we thought John was about to invoke our mantra in rule #1. Click here to read what Jennings has to say.