Part 6/8:
Marks emphasizes that investors must focus on the relationship between price and value. Even an asset of high quality can lead to significant financial loss if acquired at too high a price. His advice includes the critical mantra that “the secret to investment success is buying things for less than they’re worth.”
Time as a Factor in Investments
A recurring theme in Marks' discussions is the complexity of determining the timing of investments. Investors cannot predict how long it will take for a price to adjust to its intrinsic value. Acknowledging potential catalysts for change can be useful, but many investments do not offer an immediate path for realization, complicating decisions further.