My First Million Howard Marks: 79 Years of Investing Wisdom in 55 Minutes
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Aug 25, 2025 
Howard Marks, co-founder of Oaktree Capital and renowned for his insightful memos, shares his investment wisdom. He delves into the importance of risk management and emotional detachment when investing, stressing that you can't raise money in a crisis. Marks emphasizes contrarian thinking and highlights lessons from historical market cycles, like the dot-com bubble. He also discusses the cyclical nature of financial behavior, urging investors to recognize patterns and learn from past mistakes for better decision-making.
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Behavior Drives Market Risk
- The riskiest belief is thinking there is no risk; market risk comes from human behavior, not institutions.
- Buy when others are fearful and be prudent when others are careless to improve odds over time.
Adjust Expectations For Starting Valuation
- Don't assume the S&P's 10% long-term average applies at every starting valuation.
- Use P/E and historical entry valuations to set realistic 10-year return expectations.
Rebalance Away From Overpriced Equities
- Rebalance your allocation rather than blindly holding a single index when valuations rise.
- Consider shifting toward bonds or low-grade credit to reduce downside and lock in yield.
