Howard Marks: The ‘Sitting On Your Hands’ Investing Strategy
In his memo titled – What Really Matters, Howard Marks discusses the value of long-term investing over short-term market timing. He encourages investors to focus on holding quality investments rather than frequently trading, arguing that over-diversification and excessive trading often lead to suboptimal outcomes.
He highlights Bill Miller’s insight that “time, not timing” builds wealth and criticizes the notion that investment success requires constant action. Marks references the apocryphal story of Fidelity’s best-performing accounts being held by inactive or deceased investors, suggesting that sometimes doing nothing is the best strategy for achieving strong investment returns.
Here’s an excerpt from the…
