When Howard Marks reflects on 30 years of building Oaktree, it’s clear the firm’s success was never about chasing home runs—it was about doing things right.
“We merely thought that we’ve done a good job for clients to date. If we can keep doing a good job, we’ll have a successful firm,” Marks recalls. “That was the extent.”
From humble beginnings and a $10 million capitalization, Oaktree took root with no grand forecasts or profit projections. What they did have was a clear investment philosophy—and shared values. “We thought it was important to enunciate our philosophy in writing,” he says. “Interestingly, that was 30 years ago. We’ve never changed one word.”
Culture, it turns out, was the real differentiator. “Making a lot of money isn’t the only thing, or necessarily even the most important thing,” Marks explains. “If that’s your attitude toward life, then it follows… it’s not worth working with jerks.”
This “no-jerk policy” became one of the firm’s guiding principles. As Marks puts it, “We want to work with people we want to associate with—not just people who will make us the most money.”
That ethos extended beyond the office. “You read the articles about… when you get your first job in investment banking, you work 200 hours a week or something.” he says. “We don’t think that’s ever been the norm here, nor should it be.”
Oaktree’s strength, Marks believes, is most visible in moments of crisis. “In most of our experience, Oaktree has distinguished itself in bad times. We’re good in good times, but great in bad times.” Clients recognize it too: “The time when it’s important to be an out performer is in bad times.”
His investment mindset is rooted in discipline. Reflecting on why they avoided the venture capital boom, he lists the three filters: “One, there has to be a degree of inefficiency… Two, we have to have the skills to do it. And three, there has to be a low risk way to pursue those returns.”
And about that lunch with the Financial Times? Marks summed up the Oaktree approach over a meal: “Always good, sometimes great, never terrible.”
It’s not just the legacy he’s proud of—it’s the people. “I want to say… working at Oaktree is one of the very most important aspects of my life… What else is more fulfilling?”
At 30 years in, Howard Marks isn’t looking back. With a grin, he says, “My goal is 30 more. What could be better?”
You can find the entire podcast here:
30 Years of Oaktree with Howard Marks, Bruce Karsh, and Sheldon Stone
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