Monday, April 25, 2011

What Causes Outstanding Buying Opportunities?

What causes on asset to sell below its value? Outstanding buying opportunities exist primarily because perception understates reality. Whereas high quality can be readily apparent, it takes keen insight to determine cheapness. For this reason, investors often mistake objective merit for investment opportunity. The superior investor never forgets that the goal is to find good buys, not good assets.

Howard Marks in The Most Important Thing: Uncommon Sense For the Thoughtful Investor