A Sage Investor – Howard Marks – Shares His Wisdom: Part I

Howard Marks is co-founder of Oaktree Capital Management and author of The Most Important Thing: Uncommon Sense for the Thoughtful Investor (2011). His thoughts, ideas and insights have become fodder for many of our blog posts, as he is very willing to share them. In an interview with John Mihaljevic, CFA and Managing Editor of the newsletter The Manual of Ideas, Marks shares his views on many issues pertinent to the world of investing. The… Read More

Howard Marks talks Economy, QE and More

When it comes to investing in less efficient markets, Howard Marks (founder and co-chairman of Oaktree), has plenty of expertise. He also has plenty to say about the state of the economy and the factors influencing our financial outlook. In a recent Barron’s article, Marks shares his views: Central bankers can’t create economic progress; they can only stimulate activity temporarily. Rather, a nation’s productiveness (GDP) is the driver of long-term growth, which is independent of… Read More

How Current and Future Expectations Influence Stock Prices

Company performance and stock price performance, or outcomes, don’t always go hand and hand. In a very good article, Morgan Housel, economics and finance columnist for The Motley Fool, points out that predicting the future for stocks is harder than most people think. The performance of stocks are a function of future fundamentals (i.e. earnings and growth), but also “by performance within the context of expectations”. As Housel points out, one may actually predict future performance… Read More

What Yogi Berra, Pete Carroll, and Fantasy Football Can Teach Us About Investing

Can watching sports and playing fantasy football make you a better investor? Definitely, says Oakmark’s Howard Marks – if you take away the right lessons. In a piece for Barron’s, Marks talks about the lessons investors can learn from the consistency of the late Yogi Berra; from the Seattle Seahawks’ controversial playcalling decision at the end of last season’s Super Bowl; and from the world of fantasy sports. Berra, he says, may not have had the… Read More

Marks of Oaktree Capital Advises a Balance Between “Offense and Defense”

Howard Marks, co-chairman of Oaktree Capital, says “the most important thing that an investor has to do . . . is to set the balance in his portfolio between offense and defense.” He continues: “For the last four years, we’ve had a position that can be summed up as ‘move forward, but with caution. . . . I think you have to favor caution.” Regarding high yield bonds, Marks said the inference from recent activity… Read More