Howard Marks, the chairman and cofounder of Oaktree Capital Management, is renowned for his insightful assessments of market opportunity and risk. After four decades spent ascending to the top of the investment management profession, he is today sought out by the world's leading value investors, and his client memos brim with insightful commentary and a time-tested, fundamental philosophy. Now for the first time, all listeners can benefit from Marks's wisdom, concentrated into a single volume that speaks to both the amateur and seasoned investor.

Informed by a lifetime of experience and study, The Most Important Thing explains the keys to successful investment and the pitfalls that can destroy capital or ruin a career. Using passages from his memos to illustrate his ideas, Marks teaches by example, detailing the development of an investment philosophy that fully acknowledges the complexities of investing and the perils of the financial world. Brilliantly applying insight to today's volatile markets, Marks offers a volume that is part memoir, part creed, with a number of broad takeaways. Marks expounds on such concepts as "second-level thinking", the price/value relationship, patient opportunism, and defensive investing. Frankly and honestly assessing his own decisions - and occasional missteps - he provides valuable lessons for critical thinking, risk assessment, and investment strategy.

Encouraging investors to be "contrarian", Marks wisely judges market cycles and achieves returns through aggressive yet measured action. Which element is the most essential? Successful investing requires thoughtful attention to many separate aspects, and each of Marks's subjects proves to be the most important thing.

Listening Length

7 hours and 9 minutes
Author

Howard Marks
Narrator

John FitzGibbon
Audible release date

August 22, 2012
Language

English
Publisher

Audible Studios
ASIN

B0090VTBGO
Version

Unabridged
Program Type

Audiobook
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Product details

Listening Length	7 hours and 9 minutes
Author	Howard Marks
Narrator	John FitzGibbon
Whispersync for Voice	Ready
Audible.com Release Date	August 22, 2012
Publisher	Audible Studios
Program Type	Audiobook
Version	Unabridged
Language	English
ASIN	B0090VTBGO
Best Sellers Rank	#7,893 in Audible Books & Originals (See Top 100 in Audible Books & Originals) #7 in Investing Analysis & Strategy #40 in Business Decision Making & Problem Solving #75 in Decision-Making & Problem Solving

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Customer reviews

4.6 out of 5

3,049 global ratings

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Ed Cleaves

Similar to Psychology of Money

Reviewed in the United States on October 20, 2023

Verified Purchase

I was half expecting this book to be a technical description of Value Investing, with plenty of references to Warren Buffet and Benjamin Graham. Although the book started that way; I found that Howard shared many insights about investor psychology. This book is a wonderful guide on how to combine value investing with an understanding of market cycles and investor behaviour. For anyone who has read and enjoyed “The Psychology of Money”, you should definitely read “The Most Important Thing” as well.

One person found this helpful

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Allan sarkisian

great read!

Reviewed in the United States on November 10, 2023

Verified Purchase

Had a strong interest in learning about Marks’ perspective on investing… he raises numerous thought-provoking ideas that are applicable to all facets of life (not just investing)!

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Jay M

Investors must read!

Reviewed in the United States on October 5, 2023

Verified Purchase

Amazing book, packed with wisdom from the GOAT Howard!

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Patrick L Dean

An Anchor for Value Investors

Reviewed in the United States on September 14, 2023

Verified Purchase

The book articulates the fundamental concepts needed to achieve true value investing. It is not a valuation text book, but rather an anchor that holds the value investor steady in ever shifting seas of market activity.

Helpful

Vladimir Maksimovic

My take-away from this book

Reviewed in the United States on July 26, 2023

Verified Purchase

"Leverage introduces risk of ruin."

This quote stuck with me.

Helpful

S. Wang

Experienced Investment Readers: Do Not Buy

Reviewed in the United States on April 24, 2011

Verified Purchase

Just so you know where I'm coming from, I got the Kindle version early because I deeply respected Howard Marks and was excited to learn more about what he thought was the Most Important Thing (yes, I already read the oaktree memos). This book is intended to be Howard Marks' statement of investment philosophy, or his "religion" as he puts it. He counts among his peers Galbraith, Buffett, Munger, Klarman, Bernstein, Grantham, Greenblatt, Grant, and Bogle, all superinvestors in their own right, but also great investment authors (the two qualities don't necessarily coincide as we shall see).

I set out reading the thing, and even took notes. However, I soon realized that what I was reading wasn't worth noting down. I am writing this to provide fair warning to experienced readers, in full knowledge that this runs counter to the personal endorsements of Buffett and co. So I will be as specific as I can in my criticisms, and by all means buy it if you think I'm way off point. Caveat emptor.

First, the organization isn't great. Marks chooses to simply reprint a lot of his past stuff. This results in the book not being as crisp as it could be. I am not talking about a "magic formula for investing" in equations or sentences, which he explicitly says he is not providing and anyway I am not seeking. I am just asking for the basic, minimally repetitive, coherent flow of thought any investment author ought to provide to his readers in a single book.

Second, he even sort of tricks you in the title. I don't think you'll mind me spoiling this for you because it is so... lame: There is No One Important Thing. In fact, there are 18. And oh, yeah, a lot of them are minor variations of each other (Chapter 2 is on Understanding Market Efficiency. Chapter 19 is on Adding Value. You Add Value where Markets are Inefficient. wow!) Therefore the book, while short, is also much too long - Marks' entire philosophy is succinctly stated within Chapter 20 alone. I do not find anything that is said in any other chapter that is not better said in Chapter 20, except for the one new jargon that he coins, "second level thinking" (which is code for not being an idiot - "first level thinker" being a strawman hypothetical typical investor who invests like a headless chicken). In turn, this entire philosophy can be found in the eponymous memo that spawned all this verbiage: [...]

Further, experienced readers of investment books like myself will not find a lot new here. There is the obligatory anecdote about the prof walking away from the $10 bill lying on the ground. There is the distinction between an informational and an analytical edge, and the need for that over the rest of the market. There are -way- too many pithy quotes about the importance and difficulty of being contrarian. None of this is new, in fact it is the convention among investment authors, ironic for someone who stresses unconventional thinking. (Perhaps what is unconventional is that he actually practices these things. But if you're smart enough to get that, you don't need this book as anything more than a paperweight or conversation starter.)

I have found that the best way to describe this book is that "it must have been co-written by Captain Obvious". I have one final example for you if you remain on the fence about whether to buy the book. In chapter 19 he introduces the reader to the concepts of alpha and beta (yes, this book really is that introductory) and states his belief that alpha is not zero. The key to achieving nonzero alpha is apparently "superior insight". I have now entirely spoiled chapter 19 for you - it gets no more insightful than that. Ditto the rest of the book, this chapter was just the most fresh in my memory.

I'm sorry, but NOTHING in this book will tell the experienced investment reader anything he doesn't already know. By all means buy it if you still respect the guy anyway, I sure did. But absolutely do not buy if you (again, speaking only to the experienced reader) expect to gain anything new from it.

(5/5/11 - original review edited for errata and writing style - didn't feel the original review reflected what i wanted to say as it was written hastily and late-at-night.)

542 people found this helpful

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Omar

Great Read

Reviewed in the United States on July 3, 2023

Verified Purchase

I haven't finished it but it's been a great read so far. Note that buying from here will send you a print version intended for sale in India (according to the publisher page and the fact that it's priced in rupee on the book).

5 star book, but would've wanted a US version.

3 people found this helpful

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Richard M. Rockwood

An investment classic

Reviewed in the United States on April 27, 2011

Verified Purchase

Mr. Marks states that when he was attending client meetings over the years he noticed a pattern. He would say in one meeting that that such and such was the most important thing about investing and in later meetings he found himself referencing other items that he titled the most important thing to understand. Upon reflection about this pattern he decided to write a memo in July of 2003 that covered all these critical areas in his investing philosophy.

This new book expands upon the ideas he covered in that original memo. Topics that are covered include: market efficiency, value, risk, investment cycles, contrarianism, finding bargains, patient opportunism, circle of competence, luck, avoiding pitfalls, etc... In short all the topics that a focus investor needs to understand and be able to place, and use, in their own mental models.

What does Mr. Marks want his readers to gain from his book? Here are his own words from the introduction of the book:

"I didn't set out to write a manual for investing. Rather, this book is a statement of my own investment philosophy. I consider it my creed, and in the course of my investment career it has served like a religion. These are the things I believe in, the guideposts that keep me on track. The messages I deliver are the ones I consider the most lasting. I'm confident their relevance will extend beyond today.

You won't find a how-to book here. There's no surefire recipe for investment success. No step-by-step instructions. No valuation formulas containing mathematical constants or fixed ratios - in fact, very few numbers. Just a way to think that might help you make good decisions and, perhaps more important, avoid the pitfalls that ensnare so many.

It's not my goal to simplify investing. In fact, the thing I most want to make clear is just how complex it is. Those who try to simplify investing do their audience a great disservice. I'm going to stick to general thoughts on return, risk and process..."

Mr. Marks has succeeded in his goals in a brilliant manner. There is, quite simply, an incredible amount of wisdom between the covers of his book and an investor is doing them a disservice if they don't read, and re-read, this book. I will be placing it on my shelf right next to the great investments classics of Security Analysis, The Intelligent Investor, the Berkshire Hathaway annual reports, and Margin of Safety. Quite simply I can't recommend it highly enough.

68 people found this helpful

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Top reviews from other countries

Robert ‘Bob’ Macespera

A superb lesson on investing

Reviewed in the United Kingdom on February 20, 2023

Verified Purchase

This is a superb, and short, book that, to this eyes, is the best book on stocks investing since the canonical "The Intelligent Investor" was published three-quarters of a century ago (in 1948). I will defy those who may think this is an exaggeration, to name a book on stock trades so accurate, so simple, so easy to read and so practical like this one. Based heavily (and quoting often) Warren Buffett's letters to shareholders, Howard Marks explains his experience, and success, through the main points on investment. However, the author stays blissfully away from platitudes and hollow comments: no shortcut-to-get-rich here, no false promises. Far from it, Mr Marks lists constantly what's needed to succeed in the stock markets: loads of common sense, patience, discipline and a sound investment strategy based on the investor's ultimate goals. Only Warren Buffett managed to say it shorter: "buy good stocks cheap".
And at only 177 pages this "Most Important Thing" is an example that consistent messages (possibly must) be delivered in a short fashion - 95% of what's written about the stocks markets nowadays is a copy-and-paste or a bromide; most is showy and inflated with formulas only a few can understand. Mr Marks effortlessly makes all that literature futile by getting down to the point in every chapter and by not bloating the book with not even one mathematical formula. Those starting in the mysteries of buying and selling shares do have here a wonderful introduction and sound advice at a rate of, at least, one per page. Those out there with investment experience, will still learn something new, without a doubt.
As a coda, I'll recommend three other books that, after Graham's Intelligent Investor and Marks'Most Important Thing, do supply with priceless lessons on shares investment (this is just a short comment, I've reviewed these books individually too):
Peter Lynch: "One up on Wall Street". A lont-time successful fund manager, Mr Lynch is perhaps the most enthusiastic of writers on shares, and manages to transmit this enthusiasm without losing a bit of accuracy. This book is a bit dated. Published in 1989 the "big" companies were then General Elecric, Ford and the big tobacco and these firms are used for the many examples the book contains, but its lessons are as good and useful for the third second half of the XX century as they are now.
John Bogle: "The little book of Common Sense investing". Very short, but packed with sound advice. Also a very successful fund manager, Mr Bogle wrote a pamphlet on staying away from fashions and "trends" - his theory is that following a stock index for decades may sound dull, but it is a guarantee of profit. With very good entries on dividends too.
Philip Fisher: "Common stocks and Uncommon Profits". Even older than the previous two, this minor classic was published in 1960 (one of Mr Fisher's favorite stocks was Motorola, then a transistors maker). It is written in the elegantly sober style of the mid-century and it is full of investment wisdom. As with the previous other two books, it offers no miracle and it states often that investment is a long-term activity.

3 people found this helpful

Amazon Customer

Great Book!

Reviewed in India on October 16, 2023

Verified Purchase

A must read for any budding investor. The book is all about the psychology and mindset of a superior investor.

Matthew Flanagan

Real pearls of investing wisdom

Reviewed in the United Kingdom on July 20, 2023

Verified Purchase

This book has managed to help give me a level head in what can sometimes be a confusing market.

The pendulum analogy is a great way to understand how markets are always in flux and when to know at which part of a market cycle you may be at. Nobody really knows what the market will do tomorrow, but we can arm ourselves with the information to make reasonable decisions.

There are some real pearls of wisdom dotted throughout this book. A must read for any investor.

Michael Kurkdjian

An excellent common sense investing book a lot of information on how to get better

Reviewed in Canada on February 21, 2023

Verified Purchase

This is a very underrated book. There is excellent advice on almost every page. The author Howard Marks has also received annotations by other great investors throughout the book that emphasize the points and give different perspectives. The content of the book can be applied to any kind of investment not just stocks, bonds, but anything to do with investing our funds for the future. Truly wish I had read this book years ago. I will definitely read it a second time.

Richard Garand

not for everyone, but if you know enough and skip half the book there are good reminders

Reviewed in Canada on January 14, 2020

Verified Purchase

In the first few chapters I nearly stopped reading this book. It starts out with some generic advice and typical investment industry nonsense, like saying investors who only get market returns have failed (if doing better than 90% of people is failing...) or active managers who stay out of a bull market will have smaller losses in a downturn (no, just no, this doesn't happen).

But then it actually got better. The book mixes general commentary with bits from letters going back several decades.

Some of the commentary does actually go deeper than the platitudes and give you useful reference points. For example one part shows how investors may stretch the limits of risk in unusual assets even while they are avoiding the stock market, so you won't see a general euphoria. Another idea in the book that I realized some time ago but almost no one says is that investors commonly think higher risk investments will deliver higher returns, but if that was true they wouldn't actually be higher risk. Sometimes you just lose.

The parts from past letters are interesting because you can compare the way of thinking with what was happening at the time. Some show timing that's too good to be true, like a letter in October 2008 that said it was a good time to buy. Others are a bit early, like other letters from 2004 - 2006 that call out excessive risk in the market. All of them are interesting because we know what ended up happening.

It would have been even better to see specific instances from past letters that turned out to be wrong. There is some discussion about how the right call may have the wrong result and vice versa, and the book doesn't really go to great lengths to make it seem like Marks is always right, but there could be good lessons in showing more of the other side.

To the uninformed investor this book could deliver the wrong lessons, or a false sense of certainty about the future. It does warn against that, but that warning is more likely to be received in the right way if you have read a lot about investing already. And the basic lessons are repeated in hundreds of other books.

If you have that frame of reference you should know to question everything you read, no matter who it comes from (Warren Buffett's annual letters have very few flaws, but this is not on the same level). From that perspective, if you're willing to read through some material that is a waste of time, there are some valuable reminders in here that will make you question your thinking in a good way.

Those are good enough to give it 4 stars, even though it can be misleading to beginners and slow for more experienced readers. It could have been written better for one of those audiences instead of falling in the middle and serving both poorly. It is unfortunately easy to take the wrong lessons from the book.

7 people found this helpful

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The Most Important Thing: Uncommon Sense for The Thoughtful Investor Audible Audiobook – Unabridged

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