Howard Marks documented an investor who was never in the top 50% of peers in any given year but was in the top 4% over a 20-year period because everyone beating him in any given year could not sustain their outperformance; this demonstrates why defining your ultimate goal (long-term compounding vs short-term beating) determines whether you play a different game than traders.
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Speaker
Morgan HouselEvidence Quote
“over a 20-year period he was in like the top 4% because everyone else who was beating him in a given year couldn't keep it going”
Source
Morgan Housel: What You Need to Master (And Avoid) to Get Rich, Stay Rich, and Build Wealth— The Knowledge Project PodcastCreated: 8/10/2026, 11:10:02 PM
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