This podcast explores the parallels between strategic risk-taking in chess and investing. The discussion begins with Maurice Ashley, a chess grandmaster, explaining the concept of "sacrifice" in chess and its strategic implications. Howard Marks and Bruce Karsh, both from Oaktree Capital Management, then relate this to investing, emphasizing that calculated risk-bearing, even with potential losses, is crucial for achieving superior returns. The conversation highlights the importance of decision quality over outcome, situational awareness, and the need for contrarian thinking in both fields. A key takeaway is that successful investors, like skilled chess players, must be comfortable with losses and focus on the process of making sound decisions rather than solely on achieving immediate, tangible results.
