Listening to Howard Marks talk about his journey, you quickly realize he isn’t just sharing a career story — he’s explaining how to survive and thrive in investing and in life.
One of the biggest lessons he repeats is simple but powerful: investing is a mental game. “Investment management is a purely mental activity,” Marks says. “It doesn’t help to be stronger or younger or faster or work harder… You have to think different from others and deeper but also better.”
He calls this second-level thinking — not just knowing what everyone knows, seeing what others miss, and having the courage to act on it.
But second-level thinking isn’t enough by itself. Marks stresses the importance of intellectual humility. “Most of the time,” he says, “the consensus is closest to the truth… than the lone wolf.” You can’t just be a contrarian for the sake of it. Being different only works if you’re also right — and that requires a careful, honest assessment of your own thinking.
Another core lesson from Marks is about cycles — and how vital it is to understand where you are in them. He points out how after the tech bubble burst, nobody wanted stocks or bonds, leading to the explosion of alternative investments — and a huge tailwind for Oaktree.
Timing matters. Recognizing when you’re in boom times versus busts is critical, and resisting the emotional pull of the crowd is even more important.
One of the most refreshing parts of the conversation is how seriously Marks takes risk control. He talks about how Oaktree’s mission is not just to make good money, but to do it “with the risk under control.” It’s not about swinging for the fences — it’s about steady, disciplined decision-making that survives the test of time.
Marks also offers life advice for investors: stay unemotional. “Being unemotional is very good for being an investor,” he says. Fear, greed, and especially envy can be destructive. As he puts it, “There’s nothing so injurious to your mental well-being as watching a friend get rich.” Staying grounded — being content, grateful, and generous — isn’t just good for your happiness. It’s essential for clear-headed investing.
Above all, Marks reminds us that integrity isn’t negotiable. From day one, Oaktree was built on taking the high road, even if it meant earning less money. “If we don’t do these things,” he says, “we don’t deserve to be financially successful.”
You can watch the entire interview here:
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