Howard Marks on investing errors

The biggest investing errors come not from factors that are informational or analytical, but from those that are psychological.

~ Howard Marks

 

Howard Marks on risk

People want to be able to take the concept of risk and use it in a formula to do computations.  The only number that’s available to use as a proxy for risk is volatility, or the standard deviation of prices or returns.  That’s not what risk is.  Risk is the probability of losing money, [but] there is no number you can use for that because there’s no place you can look to find out what the probability of a bad outcome is today or what it was six months ago when you made the investment.  So, you can be quantitative but not accurate, or accurate but not quantitative.  You can’t do both.

~ Howard Marks, "Howard Marks on Trump, Risk, Inflation, and Tariffs," Barron's, November 9, 2024

Howard Marks on lending

The worst loans are made in the best of times.

~ Howard S. Marks

Howard Marks on value investing

For a value investor, price has to be the starting point.  It has been demonstrated time and time again that no asset is so good that it can’t become a bad investment if bought at too high a price.  And there are few assets so bad that they can’t be a good investment when bought cheap enough.

~ Howard Marks

(as quoted by Tim Price in "The Only Thing That Matters?")

Howard Marks on risk taking

There are old investors and there are bold investors, but there are no old bold investors.

~ Howard Marks

Howard Marks: Do the debt and deficit still matter?

Q: Do you think that the debt and deficit still matter?

A: I find it hard to believe they don't.  It's like saying that we have a credit card - the United States has a credit card - with an infinite balance capability and you never have to pay it off.  It sounds too good to be true.  And if someone offered me that credit card, I would be looking for the catch.

~ Howard Marks, "Oaktree's Marks Says This Is the Time to Try to Be Resourceful," 8:45 mark, Bloomberg TV, April 5, 2021

Howard Marks on economic stimulus

We've never seen stimulus like we have at this time. I always say that if you've never seen something before you can't say how it's going to end.

~ Howard Marks, "Oaktree's Marks Says This Is the Time to Try to Be Resourceful," 8:10 mark, Bloomberg TV, April 5, 2021

Howard Marks on contrary investing

Large amounts of money aren’t made by buying what everybody likes. They’re made by buying what everybody underestimates.

~ Howard Marks

Howard Marks on success and failure

Success carries within itself the seeds of failure, and failure the seeds of success.

~ Howard Marks, The Most Important Thing

Howard Marks on financial market risks

I wouldn't describe it as urgent today.  The economy is still clipping along at a modest pace and likely to do so.  There has not been an economic boom, so I don't think there has to be an economic bust, and certainly not anytime soon.  So I'm not commenting so much on the fundamentals; I'm commenting on investor behavior and asset prices.

~ Howard Marks, Bloomberg interview, 3:30 mark, August 1, 2017