We Study Billionaires - The Investor’s Podcast Network

TIP497: Lessons from Billionaire Howard Marks

Nov 22, 2022

Howard Marks, co-founder of Oaktree Capital and a renowned investment guru, dives deep into his vital insights on investing. He shares the importance of second-level thinking and how psychology significantly affects market behavior. Marks emphasizes the cyclical nature of markets, detailing common investor mistakes and the necessity of focusing on bargains. He also discusses strategies for low-interest environments and the folly of making macroeconomic predictions. His approach to defensive investing is a key takeaway, promoting risk management over high-return pursuits.

55:49

Episode guests

Howard Marks

AI Chapters

Episode notes

Intro

4min

The Art of Investing: Beyond the Numbers

11min

Misconceptions in Investment Performance

4min

Navigating Investment Risk and Psychology

17min

Contrarian Investment Strategies

9min

Patient Opportunism in Investing

11min

Investment Wisdom: The Defensive Strategy of Howard Marks

3min

IN THIS EPISODE YOU’LL LEARN:

00:01:50 - The biggest investing lessons from Howard’s book, The Most Important Thing.
00:03:07 - How to apply second-level thinking to our investing strategy.
00:03:44 - How psychology plays such an important role in markets.
00:07:37 - How Howard thinks about the efficiency of markets.
00:20:32 - The role market cycles play in Howard’s investment strategy.
00:23:23 - Howard’s six reasons for why investors make mistakes.
00:31:27- Why you should only invest in bargains.
00:35:10 - How to invest during a low-interest rate environment.
00:39:04 - Why we should put an intense focus on investing defensively.
00:44:59 - Why making macroeconomic forecasts is likely a fool's errand.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Tune into the recent We Study Billionaire’s episode covering the Worldly Wisdom of Charlie Munger.
Learn about the best investor you’ve never heard of, Nick Sleep.
Howard Marks’ books: The Most Important Thing & Mastering the Market Cycle.
Howard’s article: The Illusion of Knowledge.
Check out William Green’s conversation with Howard Marks here.
Check out Trey Lockerbie’s conversation with Howard Marks here.
Follow Clay on Twitter and Instagram.

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