Howard Marks (Oaktree Capital)

Howard Marks (Oaktree Capital)

Postby winston » Sat Apr 12, 2014 8:20 pm

Howard Marks, chairman of asset-management firm Oaktree Capital, released his latest letter to investors.

Oaktree manages around $80 billion. Marks started the fund to invest in distressed debt.

He's a born contrarian obsessed with avoiding risk.

And he's wary of today's markets, advising investors to "move forward, but with caution."

In Marks' view, when investors stop worrying about risk – like in 2007 – look out below.

Or, in the oft-quoted words of Warren Buffett, "be fearful when others are greedy, and greedy when others are fearful."
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Howard Marks

Postby winston » Sat Apr 12, 2014 8:26 pm

According to Marks' latest letter, you can achieve superior results in investing by being a contrarian.

Invest in assets everyone else is ignoring or doesn't have the guts to buy… but only in situations where your potential gains are much larger than your downside risk.

From Marks' letter…

The goal in investing is asymmetry: to expose yourself to return in a way that doesn't expose you commensurately to risk, and to participate in gains when the market rises to a greater extent than you participate in losses when it falls.

But that doesn't mean the avoidance of all losses is a reasonable objective. Take another look at the goal of asymmetry set out above: it talks about achieving a preponderance of gain over loss, not avoiding all chance of loss.

Why should superior profits be available to the novice, the untutored, or the lazy? Why should people be able to make above-average returns without hard work and above-average skill, and without knowing something most others don't know? And yet many individuals invest based on the belief that they can. (If they didn't believe that, wouldn't they index, or, at a minimum, turn over the task to others?)

To repeat… Just holding your nose and buying unpopular assets isn't enough. You must assess the risk of entering the position

No, the solution can't lie in rigid tactics, publicly available formulas, or loss-eliminating rules… or on complete risk avoidance. Superior investment results can only stem from a better-than-average ability to figure out when risk-taking will lead to gain and when it will end in loss. There is no alternative.


Source: Growth Stock Wire
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Howard Marks

Postby winston » Sat Sep 20, 2014 8:14 pm

While investor behavior hasn't sunk to the depths seen just before the crisis (and, in my opinion, that contributed greatly to it), in many ways it has entered the zone of imprudence.

To borrow a metaphor from Chuck Prince, Citigroup's CEO from 2003 to 2007, anyone who's totally unwilling to dance to today's fast-paced music can find it challenging to put money to work.

It's the job of investors to strike a proper balance between offense and defense, and between worrying about losing money and worrying about missing opportunity.

Today I feel it's important to pay more attention to loss prevention than to the pursuit of gain.

- Howard Marks
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Howard Marks

Postby winston » Sat Jan 23, 2016 9:18 am

Howard Marks: What does the market know?

Source: Daily Crux

http://thecrux.com/howard-marks-what-do ... rket-know/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Howard Marks

Postby behappyalways » Tue Dec 26, 2017 3:02 pm

Just read a book by him......

Billionaire Marks, who called financial crisis, says ‘this is a time for caution’ on the markets


1. "The S&P 500 is selling at 25 times trailing-twelve-month earnings, compared to a long-term median of 15."

2. "The Shiller Cyclically Adjusted PE Ratio stands at almost 30 versus a historic median of 16. This multiple was exceeded only in 1929 and 2000 – both clearly bubbles."

3. "The 'Buffett Yardstick' – total US stock market capitalization as a percentage of GDP … hit a new all-time high last month of around 145, as opposed to a 1970-95 norm of about 60 and a 1995-2017 median of about 100."

Source: CNBC

https://www.cnbc.com/2017/07/27/howard- ... ution.html
血要热 头脑要冷 骨头要硬
behappyalways
Millionaire Boss
 
Posts: 39929
Joined: Wed Oct 15, 2008 4:43 pm

Re: Howard Marks (Oaktree Capital)

Postby behappyalways » Tue Feb 26, 2019 8:42 pm

Howard Marks Burnishes the Legend of Jeffrey Gundlach
https://www.bloomberg.com/opinion/artic ... y-gundlach
血要热 头脑要冷 骨头要硬
behappyalways
Millionaire Boss
 
Posts: 39929
Joined: Wed Oct 15, 2008 4:43 pm

Re: Howard Marks (Oaktree Capital)

Postby behappyalways » Sat Jun 15, 2019 10:35 am

Latest memo from Howard Marks: This Time It's Different
https://www.oaktreecapital.com/insights ... arks-memos
血要热 头脑要冷 骨头要硬
behappyalways
Millionaire Boss
 
Posts: 39929
Joined: Wed Oct 15, 2008 4:43 pm

Re: Howard Marks (Oaktree Capital)

Postby behappyalways » Tue Jul 23, 2019 1:55 pm

Howard Marks: How to Assess Risk in a Bull Market

“All I’m saying is that for all the things listed above to simultaneously be gaining in popularity and attracting so much capital, credulousness has to be high and risk aversion has to be low.

It’s not that these things are doomed, just that their returns may not fully justify their risk.

And, more importantly, that they show the temperature of today’s market to be elevated.

Not a nonsensical bubble – just high and therefore risky.”


Source: Guru Focus

https://www.gurufocus.com/news/912685/h ... ull-market
血要热 头脑要冷 骨头要硬
behappyalways
Millionaire Boss
 
Posts: 39929
Joined: Wed Oct 15, 2008 4:43 pm

Re: Howard Marks (Oaktree Capital)

Postby behappyalways » Sun Jul 28, 2019 3:36 pm

Latest memo from Howard Marks: On the Other Hand
https://www.oaktreecapital.com/insights ... arks-memos
血要热 头脑要冷 骨头要硬
behappyalways
Millionaire Boss
 
Posts: 39929
Joined: Wed Oct 15, 2008 4:43 pm

Re: Howard Marks (Oaktree Capital)

Postby behappyalways » Fri Aug 09, 2019 5:53 pm

Oaktree’s Howard Marks Rebukes Fed for Inflating Prices, Enriching Rich
https://www.bloomberg.com/news/articles ... ching-rich
血要热 头脑要冷 骨头要硬
behappyalways
Millionaire Boss
 
Posts: 39929
Joined: Wed Oct 15, 2008 4:43 pm

Next

Return to Market Gurus

Who is online

Users browsing this forum: No registered users and 8 guests

cron