Howard Marks

  • (paraphrasing) – Invest scared, always require a substantial margin for error and be conscious of what you don’t know and can’t control
  • “If the return appears so generous in proportion to the risk, might you be overlooking some hidden risk?”
  • “a hugely profitable investment that doesn’t begin with discomfort is usually an oxymoron.”
  • “the consensus opinion of market participants is baked into market prices. Thus, if investors lack insight that is superior to the average, they should expect average risk-adjusted performance”
  • “I like to say Oaktree buys when people say, “no way” and sells when they say, “no sweat”
  • “To take early advantage of areas like distressed debt, you have to put your faith in concepts and people, based on logical arguments and analyses but without the benefit of historic performance data. That’s how you make the big bucks”
  • “When you manage your own money, the decisions are made according to your view of what’s best for you. When other people manage your money, the decisions may also be influenced by what’s best for them”
  • “While it’s true that only large positions can get you into trouble, it’s equally true that only large position can make a big contribution. (This is one of the great dilemmas in investing.)”
  • “Anybody who thinks he knows what’s going to happen in the investment world is deceiving himself. But anybody who thinks he knows when it’s going to happen is really off base, in my opinion. I sometimes talk about what should happen, but I never talk about when it will happen.”