By Hedge Fund Insight staff
Howard Marks, co-chairman of Oaktree Capital Group, is a closely followed as a commentator on investment matters. Here is a small selection of his comments and prognostications from this year.
“Experience is what you got when you didn’t get what you wanted.”
“I view alternative investing as like an artist with a canvas”
“If we avoid the losers, the winners take care of themselves”
“The market doesn’t know much in the short-run”
“The market does not have above-average insight: it has above-average emotion.”
“In the short term, the market merely reflects consensus opinion regarding an asset’s future popularity, something that’s highly susceptible to the ups and downs of psychology.”
“Developed markets like the U.S. are now transitioning from a period of optimism, positive attitudes, risk tolerance and complacency to a period of pessimism, fear and risk aversion. Fundamentals in the world may be getting worse, and attitudes have just begun to turn from positive to negative, and they probably have further to go. This new period has only just begun. Now we are prepared to be a little less cautious in terms of our appetite for investments. This is not time of a massive opportunity, for aggressive movement of capital (like the 4Q of 2008). ”
“We want to buy things whose price underestimates the value of the underlying assets or earnings (value investing) or the future potential (growth investing). In either case, we’re looking for instances when the market is wrong.”
“Is the decline in the price of oil really a bad thing? Maybe if you are an oil company, oil-services company or an oil-producing country, but not for the rest of us.”
Articles on Howard Marks/Oaktree Capital