Howard Marks

Howard Marks

1946 - present

A New York native billionaire, Howard Marks is a co-founder of Oaktree Capital Management, one of the country’s foremost fund managers for distressed securities. He is known for his investing prowess and his visionary, explicit market commentaries. Commended by financial superstar Warren Buffett, Marks has written several books that is highly-praised by the mass.

Professional Experience

Academic History

  • known as one of the world's greatest investors
  • widely regarded as the "Warren Buffet" of distressed debt securities
  • specializes in putting capital to work when others are fearful (aka "catching falling knives")
  • has appeared as a guest on Real Vision multiple times

Has followed a set of principles to become a great investor:

  1. Discipline
  2. Contrarianism
  3. Selectivity

Learnings From Howard

  • The key to understanding the business & market cycle is to understand that most behavior is cyclical and tends to go to far
  • The human contribution to markets causes excesses in one direction then reversion towards (and often through) the mean 
  • Its hard to predict the timing of cycles, but is easy to predict that they will happen
  • Cycles can tell us what is likely to happen (not when)
    • Example:  When elevations are high, they are likely to eventually go down. 
  • Definition of Investing:  The process of positioning capital to benefit from future events
  • Rejects the idea of "waiting for the bottom" to invest - because we never know how low things will go or where the bottom is.  When things are cheap you have to start investing and that might mean catching a falling knife as things get even cheaper

    Views Before The 2020 Corona Crash:

    • felt that valuations were already elevated for multiple years prior
    • investing approach was to move forward, but stay cautious