In Good Company with Nicolai Tangen Howard Marks: Oaktree Capital, Investment philosophy, Risk and Randomness
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Jun 12, 2024 
Howard Marks, co-founder of Oaktree Capital and a renowned investor, shares insights from his impressive career in finance. He discusses the importance of a well-defined investment philosophy and the unpredictability of human behavior. Marks emphasizes the necessity of effective risk management, viewing it as a strategy to engage with uncertainty rather than avoid it. He also dives into contrarian investing, encouraging aspiring investors to challenge market norms and embrace mentorship. Tune in for a treasure trove of investment wisdom!
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Marks' Investment Philosophy
- Prioritize risk control and aim for consistent returns, slightly above average.
- Specialize deeply in a few less efficient markets and avoid relying on macro forecasts or market timing.
Limits of Knowledge
- Randomness significantly impacts investment outcomes; good decisions can fail, and bad ones can succeed.
- Acknowledge the limits of knowledge, especially when dealing with unpredictable human behavior in markets.
Judging Decisions
- Evaluate decisions based on the process, not solely on outcomes, due to randomness.
- Short-term success can be due to luck, but long-term success requires skill.
