Category Archive

During his latest Insight Conversation, Howard Marks explains why the tide is going out and the unusually ‘easy’ period for risk-taking is over. Here’s an excerpt from the conversation: The short answer is very simple. In the 10 years you’re talking about, Anna, 2010 through 2019, it was an easy … Read More

In his book Mastering the Market Cycle, Howard Marks discusses the madness of markets, and why stock prices fluctuate more than earnings. Here’s an excerpt from the book: If the market were a disciplined calculator of value based exclusively on company fundamentals, the price of a security wouldn’t fluctuate much … Read More

One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More

During his recent interview with Bloomberg, Howard Marks discussed the recent increase in high yield bond yields and how they can be competitive with equities when their yields are higher. He emphasizes the trade-off between the reliability of credit investments and the potential for equity investments to surprise on the … Read More

During his recent interview on the OakTree Podcast, Howard Marks says looking ahead those who conduct better credit analysis and take less risk are likely to be rewarded. The period just behind us was an unusually easy period in which risk taking was rewarded. Here’s an excerpt from the interview: … Read More

In his latest memo titled Further Thoughts on Sea Change, Howard Marks believes that investors are still optimistic about the future of the stock market, despite the recent challenges caused by inflation and interest rate hikes. However, he also believes that this optimism may be misplaced, and a lessening of … Read More

In this interview with Bloomberg, Howard Marks says that credit instruments, such as loans and bonds, can provide equity-type returns with a good level of safety. He points out that the S&P 500 stock index has returned 10% per year for 100 years, but today investors can get equity-type returns … Read More

In this interview with David Rubenstein, Howard Marks argues that the impact of a company event on its security prices is not direct or mechanical. Rather, it is mediated by people’s reaction to the event. Here’s an excerpt from the interview: Marks: Number one is that people believe in the … Read More

In his 1992 memo, Howard Marks explained why, in investing, price is more important than quality every time. Here’s an excerpt from the memo: The second factor determining whether something will be a good investment is price. Ceteris paribus, given two assets of similar quality, it’s better to pay less … Read More

In his latest memo titled – Fewer Losers, or More Winners?, Howard Marks explains how superior investing involves creating an asymmetry with more upside potential than downside risk, and alpha is the key to achieving this. Here’s an excerpt from the memo: The last element I want to touch on … Read More

In this interview with the Brazil Journal, Howard Marks explained why he feels very positive about the current environment, saying the fragile conditions create more opportunities. Here’s an excerpt from the interview: Marks: I gave a speech from 2010 to 2020 entitled “Investing in a Low Return World.” We were … Read More

In his book, The Most Important Thing, Howard Marks explains why being alert to what’s going on and taking the market’s temperature, can help us gain a better understanding of the investment climate and make better investment decisions. Here’s an excerpt from the book: When I say that our present … Read More

In this interview with 3ProTV, Howard Marks discusses the difference between first level thinking, which is simplistic and often wrong, and second level thinking, which is more nuanced and takes into account all of the factors involved. Here’s an excerpt from the interview: Marks: This idea that there was no … Read More

In this lecture on SYA, Howard Marks discusses the lower returns across all asset classes, that have increased risk-taking, and a “race to the bottom” in the investment world. Here’s an excerpt from the lecture: Marks: The issue is that when we got into the global financial crisis, the central … Read More

During his recent presentation at INSEAD’S IMC, Howard Marks explained why the future is unusually murky, unusually uncertain. Here’s an excerpt from the presentation: Marks: Each investor should have a notion for what is the right balance of aggressiveness and defensiveness for them. It’s a personal thing. It’s subjective, and … Read More

One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More

During his recent OakTree podcast, Howard Marks explained why the strategies that have worked best need to change in the current environment. Here’s an excerpt from the podcast: Marks: I feel quite strongly about this. I’m not somebody who usually has strong macro opinions, but this time I do. Anybody … Read More

In his book, Mastering The Market Cycle, Howard Marks discusses the one question investors should ask regarding a possible investment. Here’s an excerpt from the book: My point is that, in a negative environment, excessive risk aversion can cause people to subject investments to unreasonable scrutiny and endlessly negative assumptions … Read More

In his June Roundup of OakTree Letters, Howard Marks explained why the years ahead won’t be easy for investors. Here’s an excerpt from the roundup: Marks: The overarching theme of my sea-change thinking is that, largely thanks to highly accommodative monetary policy, we went through unusually easy times in a … Read More

In this interview with Nicola Wealth, Howard Marks discusses the cardinal sin of investing. Here’s an excerpt from the interview: Marks: That’s a really good observation. First of all the worst single thing you can do as an investor, and there are many ways to make mistakes, and there are … Read More