Howard Marks, the co-founder of Oaktree Capital Management, is well-known for his investment wisdom and insightful memos. Here are some notable quotes from him:

On Risk and Uncertainty

1. “You can’t predict, but you can prepare.”

• Marks emphasizes the importance of preparation and adaptability in the face of uncertainty, especially in investing where predicting the market is notoriously difficult.

2. “In investing, what is comfortable is rarely profitable.”

• He suggests that the best investment opportunities often come from taking calculated risks and stepping out of one’s comfort zone.

3. “Risk means more things can happen than will happen.”

• Marks believes that risk is about the range of potential outcomes, not just the probability of one event. Investors should consider all possible outcomes and their implications.

On Market Cycles

4. “The most important thing is to know where we are in a cycle and to act accordingly.”

• He stresses the importance of understanding market cycles to make informed investment decisions, as markets go through phases of euphoria and despair.

5. “We may never know where we’re going, but we’d better have a good idea where we are.”

• Marks encourages investors to assess the current environment and react to it, rather than trying to predict the future.

On Investing Mindset

6. “The discipline to wait for the right opportunities is the key to successful investing.”

• Patience is crucial, and sometimes the best action is inaction until the right opportunity presents itself.

7. “To be a successful investor, you have to have a philosophy and process you believe in and can stick to, even under pressure.”

• Consistency and conviction in one’s investment approach are essential, especially during challenging times.

8. “Investment success doesn’t come from ‘buying good things,’ but rather from ‘buying things well.’”

• Marks highlights that successful investing is about finding value and purchasing assets at the right price, not just focusing on high-quality assets.

On Market Sentiment

9. “The pendulum of the market swings between euphoria and despair.”

• He believes that markets often overreact in both directions. Awareness of these swings can help investors avoid extremes.

10. “Skepticism is the best tool for long-term success.”

• Marks values skepticism, as it helps investors avoid getting swept up in market hype and make more rational decisions.

Howard Marks’ quotes are grounded in the principles of value investing, risk management, and market awareness. His insights often serve as reminders for investors to stay disciplined, patient, and informed.

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Howard Marks is an American investor, author, and co-founder of Oaktree Capital Management, a leading investment management firm that focuses primarily on distressed debt, high-yield bonds, and other alternative investments. Born in 1946, Marks has become widely respected in the investment world for his deep insights into market cycles, risk management, and value investing.

Key Points About Howard Marks:

• Education: Marks attended the University of Pennsylvania, where he earned a degree in finance from the Wharton School, and then went on to get an MBA from the University of Chicago Booth School of Business.

• Career: He began his career at Citibank in the early 1970s, where he focused on analyzing and managing convertible securities and high-yield bonds. He later joined TCW Group, where he led the company’s high-yield and distressed debt investment strategies. In 1995, Marks co-founded Oaktree Capital Management with Bruce Karsh and several colleagues, and the firm quickly became one of the most successful and influential investment firms globally.

• Investment Philosophy: Marks is known for his disciplined approach to investing. He emphasizes risk management, value investing, and contrarian thinking. He believes in waiting for the right opportunities and often speaks about the importance of understanding where we are in the market cycle.

• Memos: Marks regularly publishes memos on investment and market topics, which have garnered a loyal following among investors and financial professionals. These memos offer his insights on a range of subjects, including market psychology, risk, and economic trends.

• Books: Marks has written several books, including The Most Important Thing: Uncommon Sense for the Thoughtful Investor and Mastering the Market Cycle: Getting the Odds on Your Side. His writing is highly regarded for its clear, straightforward style and practical investment advice.

Marks is considered one of the foremost thinkers in modern finance, and his thoughts on investing and market behavior are highly respected by peers, including Warren Buffett. Through his memos and books, he continues to educate and influence both new and experienced investors around the world.