This is Trend Following Radio, where great thinking comes alive.

Nobel Prize winners, legendary traders, bestselling authors, and the pros that know what drive us irrational human beings.

I am your host, Michael Covel, not filtered, raw, honest.

That's my passion.

You've probably heard of him if you're an investor, if you're a trader.

Perhaps not, but most likely you have, or you've seen his writings, his commentary.

This would be Howard Marks, the billionaire value investor.

Four decades of success.

He has a great book out. the most important thing on common sense

for the thoughtful investor. I'm going to play an excerpt that I really like because while I

just said that Howard is a very successful value investor, for most of this excerpt,

he could very well be a trend following trader.

It's the same logic,

the same thought process.

For example, he talks about a hypothetical

2% growth rate forecast.

You know, these forecasts that are thrown around every year, every month, like clockwork.

He notes, it's all baked in to the price already.

Now that, that is trend following 101.

Right there, it's baked into the price.

Meaning that price has a lot of valuable information inside it.

There's not necessarily better information available.

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