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Evolving Investment Philosophy
This chapter explores Howard Marks's investment philosophy evolution from 1990 to 2023, highlighting the importance of risk control and consistency over seeking extreme short-term gains. It emphasizes that avoiding major losses is crucial for bond investors, while stock investors must also focus on identifying winners, all within a framework that embraces uncertainty for higher returns.
In today’s episode, Shawn O’Malley (@Shawn_OMalley_) breaks down 30 years’ worth of memos from one of Wall Street’s most storied investors: Howard Marks.
You’ll learn how Marks’s thinking about beating the market evolved over the course of his career, what it was like going through the 2008 Financial Crisis as a professional investor, the 5 market calls that Marks is most proud of, avoiding the cardinal sin of investing, plus so much more!
IN THIS EPISODE, YOU’LL LEARN
00:00 - Intro
01:38 - Why steady, slightly above-average returns drive the best long-term returns
05:28 - How to find a balance between finding fewer losers and more winners
07:36 - How to intelligently bear risk for profit
13:48 - Why nobody knows what will happen next in a crisis
14:40 - Why booms and busts are inevitable
22:44 - When Marks realized the dot com bubble was going to pop
24:08 - How low interest rates drive investors to take risks
27:33 - Why beliefs about the housing market were wrong
30:45 - How Marks’s firm responded to the Great Financial Crisis
36:02 - How Marks understood when to start buying stocks again after the 2008 crash
37:59 - When Marks knew bargains were being offered in March 2020
39:37 - How to avoid the cardinal sin of investing
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
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