The #1 Reason for Inequality (from a Billionaire)

Yesterday I was listening to a podcast and a 2-minute segment made me pause and grab my notebook.

The interview was with Howard Marks, an investor with a net worth of almost $2 billion according to Forbes.

Now, I know nothing about investing, nor had I ever heard of this guy.

But he said something so true, and it’s a massive factor in whether you succeed or fail when working for yourself…

Stocks go up 9-10% per year on average since we’ve been measuring them.

However, when you zoom in on the specific cases, it’s rarely close to 10% per year increase. People’s individual experience is often MUCH better or worse.

What causes the wide fluctuations? Human emotion.

People swing daily from too positive and optimistic to negative thoughts, both of which cause irrational decision making.

Howard Marks also added a funny quote from Warren Buffett (paraphrasing):

When I see a burger on-sale, I want to buy it. Investing is the only game where people shy away when prices are low and are eager to buy when prices are high.

Those who get what they desire have a steady, long-term growth mindset and a singular focus.

Those who lose dwell on their fears and never take a step, or conversely have too much overconfidence from a short-term win and get humbled.

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