The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Oaktree Capital’s Howard Marks on The Most Important Skill An Investor Can Have, The Right Way To Think About Price Sensitivity & Where Are We At Today; Take More Risk or Less?
Jan 20, 2020
Howard Marks, co-chairman of Oaktree Capital Management and author of "Mastering the Market Cycle," shares his invaluable insights gained from over five decades in finance. He reflects on how an early job rejection shaped his successful career. Marks discusses the significance of understanding market cycles and the importance of taking a contrarian approach during times of market fear. He emphasizes the need for cautious risk assessment while fostering effective partnerships within Oaktree, all amid the current economic landscape.
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Lehman Brothers Miss
- Howard Marks didn't get his desired investment banking job at Lehman Brothers.
- Years later, he learned a partner's hangover caused the hiring mistake, changing his career trajectory.
Cycle Position and Probability
- Knowing the market cycle's current position doesn't predict the future but informs probability.
- Current market signals suggest a negatively skewed probability, favoring decline over rise.
Risk Management
- Decrease risk now; don't wait for "the" perfect time, as no one can predict market peaks or bottoms.
- Assess the overall market environment, not just individual assets.
