Tag Archive

In his latest memo titled – The Impact of Debt, Howard Marks explains that leveraging debt is used to increase capital efficiency because debt is generally cheaper than equity, allowing greater asset ownership and potential profits when conditions are favorable. However, he warns that leverage also amplifies losses similarly when … Read More

During their latest discussion on The Insight, Howard Marks, Armen Panossian, and David Rosenberg discuss the current market environment. Here’s the main point from Howard Marks: Uncertainty in the Current Market: Marks highlights the numerous uncertainties in the current market environment, including geopolitical tensions, climate change, economic growth, inflation, and … Read More

In his book Mastering The Market Cycle, Howard Marks explains how understanding the interplay between market fundamentals and psychology is crucial, though it’s far from a neat or predictable process. Events can enhance psychological confidence, which in turn can bolster the economy and corporate profits, or vice versa. This interaction … Read More

In this presentation at the NBIM Investment Conference, Howard Marks discusses the strategy of identifying companies likely to deliver positive, unanticipated news, thus achieving above-average portfolio performance. By predicting such surprises and adjusting portfolio weights accordingly, an investor can benefit when the market reacts positively to the news, driving up … Read More

In this interview with CNBC, Howard Marks is convinced that AI will revolutionize the world, akin to the internet’s impact. Investing in AI, however, poses challenges. Just like the late ’90s TMT bubble, where internet stocks soared then crashed, predicting AI’s impact on portfolios isn’t straightforward. While it’s clear AI … Read More

In his latest memo titled The Indispensability of Risk, Howard Marks explains why investors should approach their portfolio with the expectation that not all investments will succeed, but a well-calculated risk can lead to overall success. This success is influenced by the balance and impact of both winning and losing … Read More

In this interview with 3 Takeaways, Howard Marks discusses the different types of diversification in investing. Ideally, these investments should react differently to various situations. For example, having many stocks in companies that all rely on China is not true diversification. True diversification is a trade-off between risk and reward. … Read More

In his latest memo titled ‘2023 in Review’, Howard Marks argues that the future is uncertain, especially in economics and investing. Most experts are unsure about what will happen with the economy, interest rates, and geopolitical events. This uncertainty is a good thing, because it means people are acknowledging they … Read More

In his memo titled Irrational Exuberance, Howard Marks discusses two investment philosophies: prudent investing and the approach that worked during the 1999 tech boom. Prudent investing emphasizes factors like diversification, value investing, and taking profits. This approach would have led to underperformance in 1999. The 1999 tech boom approach focused … 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

In this interview with Infomoney, Howard Marks highlights the importance of emotional control and risk tolerance in investing. The biggest mistake, according to Marks, is taking on too much risk, leading to panic selling during market downturns. This is because investors, unable to handle the volatility, sell their investments at … Read More

In his recent interview at the Onde Investir 2024 event, Howard Marks uses an analogy of movie ticket prices to explain the potential problems with government-controlled interest rates. Key points: Price controls can lead to unintended consequences: Just like forcing movie ticket prices down leads to overcrowding and reduces enjoyment, … Read More

During his recent interview with Merryn Talks Money, Howard Marks explains how low and declining interest rates have been a major advantage for investors, especially private equity firms, over the past 40 years. He uses the analogy of being on a moving walkway at the airport – even standing still … Read More

During this Q&A session with KKP Wealth Management, Howard Marks talks about the consistency of good returns rather than chasing ‘elephants’ (exceptional single investments). He uses the analogy of dining at his favorite Italian restaurant – always good, sometimes great, never terrible. Your objective should be not top performance every … Read More

During his latest Insight Conversation, Howard Marks says the current market and economic climate call for a cautious and strategic approach to investment, prioritizing stability and potentially shifting from equities to credit-based options. In terms of the market and economy he says: The market is not excessively high or low, … Read More

In this interview with James Altucher, Howard Marks explain how markets don’t always reflect the intrinsic value of assets. During positive cycles, optimism pushes prices beyond what individual assets are worth. This leads to excesses like the pre-Enron boom. When bubbles burst (like Enron’s bankruptcy), pessimism sets in, causing prices … Read More

In his book Mastering The Market Cycle, Howard Marks discusses a 1979 Business Week article titled “The Death of Equities”. The article highlights how popularity (or lack thereof) of an asset class can be a powerful indicator for future performance. After a decade of poor stock market performance, the article … Read More

Howard Marks and the team at Oaktree Capital have just released their 10 Year-End Book Recommendations for 2023. Here is a list of the ten: 1. Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts by Annie Duke This book is a helpful guide for anyone contemplating … 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

In his latest Insight with Annie Duke, Howard Marks emphasizes the importance of intellectual humility and considering alternate outcomes when making decisions. He argues that most people focus on their expected outcome and neglect the potential for negative consequences. They advocate for calculating expected value while being aware of its … Read More