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Efficient Market Hypothesis and Irrationality
- Howard Marks learned the efficient market hypothesis, which assumes rational investors, at the University of Chicago.
- He observes that investor irrationality leads to market swings.
Counterintuitive Investing
- Many important investing principles are counterintuitive.
- Obvious things are often wrong, requiring deeper analysis.
Questioning Market Explanations
- Don't take market explanations at face value; be skeptical, especially of media pronouncements.
- Question the causality of events and avoid readily accepting presented explanations.