The Most Important Thing: Uncommon Sense For Th... Apr 2026

: The "second-level thinker" asks, "Everyone thinks this is a great company, but is it as great as they think? Is the price too high for the actual value?".

Here is a solid story of how that uncommon sense works in the real world: The Secret of Second-Level Thinking The most important thing: uncommon sense for th...

: Success requires "knowing what you don’t know" and accepting the role of luck in every outcome. : The "second-level thinker" asks, "Everyone thinks this

In the late 1960s, a young student at the found himself at the "ground zero" of modern finance theory. Howard Marks , who would later co-found Oaktree Capital Management , spent decades refining what he calls "uncommon sense"—a philosophy that eventually became his acclaimed book, The Most Important Thing . In the late 1960s, a young student at

: No asset is so good that it can't be overpriced, and none is so bad it can't be a bargain at the right price.

: Success comes not from being right, but from being right and different from the consensus. The Pendulum and the 2000 Tech Bubble

Most people think in a straight line: "This is a great company, I should buy the stock." Marks calls this . He argues that because everyone else sees the same "great company," the price is already high, leaving no room for profit.