When I was young, my father encouraged me to find role models.
He claimed that this could be extremely beneficial for a young man’s development and even recommended some of his role models to me.
At the time, I dismissed his advice. I didn’t see any point in it, which was pretty much the case with everything he said.
Worse, some of my role models were detrimental and interfered with me living up to my full potential.
It wasn’t until my mid-20s that I finally recognized this and began using it to my advantage.
And, ever since, I have noticed a significant improvement in all areas of my life.
I am telling you this because in my line of work—the investing industry—I see many peers posing as role models and pretending they have the “key” to your financial success, when in fact they’re just after your money.
I’m not going to name any names here. They don’t deserve the attention. But I don’t want you to look up to the wrong people.
So I would like to tell you about some investors that I look up to and how they’ve helped me improve.
Howard Marks – The Master Of Market Cycles
The first one is Howard Marks.
He’s best known for being one of the first money managers to invest in the distressed bond market.
What I learned from him, however, doesn’t have anything to do with bonds. Howard Marks taught me how to look at companies’ valuations and how to determine where we are in the market cycle.
He also wrote two books on these topics called “Mastering The Market Cycle” and “The Most Important Thing.”
Both are excellent books that I can’t recommend strongly enough.
They’re also one of my go-to sources whenever I get confused about the stock market’s behavior and am trying to determine the best course of action.
Ray Dalio – Looking At The Economy From Historical Perspectives
Another famous investor I admire is Ray Dalio.
He’s a hedge fund manager, who in his later years became known for his research on socio-economic topics.
These include wealth inequality, what capitalism could look like in the future, the current monetary policy, the effectiveness of universal basic income, and how empires of the past have dealt with the same kinds of issues we face today.
I think that his view on where we stand in the grand scheme of things is worth bearing in mind and can be vital to investing success moving forward.
Stanley Druckenmiller – One Of The Best Wall Street Traders Of All Time
The last one on the list is Stanley Druckenmiller, who I’ve mentioned before in a previous essay.
He’s largely moved away from the financial industry but still occasionally appears for an interview on CNBC or Bloomberg. Given his vast trading experience, I’ve always found his opinion on the current conditions to be extremely insightful.
In a recent statement, Druckenmiller said that the stock market is more overvalued right now than he has seen it since the Dot-com bubble.
That’s quite an announcement, not to be dismissed.
While I understand why the market is rising, I also see distinct bubble signals, which I outlined in my most recent essay (and which you can read here).
While we’re watching to see how things play out from here, what should you be doing with your money?
The stocks I’m adding to my True Retirement Wealth portfolio are those active in industries that can benefit in the current COVID-environment and that are still trading at low values compared with their long-term averages.
The list is short, but I’ve found one that fits. I’m detailing it for subscribers it in this month’s True Retirement Wealth issue.