I love his memo’s and his latest one is as much of a gem as all his previous ones, Howard Marks has always been able to describe investing, the markets in such a simple and easy to understand manner.
I’ll just add personal thought on liquidity that is mentioned in brief in the memo.
I do prefer the smaller companies that larger investors stay away from and because of these firms lacking of liquidity it forces myself to work harder on understanding what exactly I’m buying/selling for myself and for clients. As a result of this I believe that it the analysis ends up being far more indepth, less fine-tuned to analysts consensus, and I will be far less likely to just take a bet/punt (which in the past normally leads to losses). Thus even when the market goes through its usual see-saws of volatility both to the upside and downside I’ll feel very comfortable and willing to hold an investment for a much longer time period than most people and in the end I’ll sleep far better at night, which is something I value the most as I have enough grey hair as it is.