TIP497: LESSONS FROM BILLIONAIRE HOWARD MARKS

21 November 2022

On today’s episode, Clay Finck studies the work of Howard Marks and shares his biggest takeaways from reading his book, The Most Important Thing. Howard Marks is the co-founder of Oaktree Capital which has $159 billion in assets under management. Howard offers a wealth of investment wisdom in his book, so we’re sure you will find a lot of value in learning from his timeless investment teachings.

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IN THIS EPISODE, YOU’LL LEARN:

  • The biggest investing lessons from Howard’s book, The Most Important Thing.
  • How to apply second-level thinking to our investing strategy.
  • How psychology plays such an important role in markets.
  • How Howard thinks about the efficiency of markets.
  • The role market cycles play in Howard’s investment strategy.
  • Howard’s six reasons for why investors make mistakes.
  • Why you should only invest in bargains.
  • How to invest during a low interest rate environment. 
  • Why we should put an intense focus on investing defensively.
  • Why making macroeconomic forecasts is likely a fool’s errand.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

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[00:00:02] Clay Finck: Hey everyone. Welcome to the Investor’s Podcast. I’m your host, Clay Finck, and on today’s episode, I’m going to be doing a deep dive on Howard Marks’ book, The Most Important Thing. I’ll be covering some of the biggest takeaways I had from going through his wonderful book. Howard Marks is the co-founder of Oak Tree Capital, which has 159 billion in assets under management.

[00:00:25] Studying from a fantastic investor like Howard reminds me of how much I don’t know as an investor in that the world is very uncertain and unpredictable in a world that’s ever changing. It’s important to have the humility to challenge your own beliefs and continually upgrade our level of thinking.

[00:00:42] During this episode, I’ll be discussing some of the biggest lessons I learned from reading Howard’s book, The Most Important Thing. More specifically, I’ll be talking about the role of psychology in markets, how Howard thinks about the efficiency of markets, the role market cycles play in Howard’s investment strategy.

[00:00:58] Why he only looks for bargains when investing. How Howard thinks about investing in a low interest rate environment, why we should put an intense focus on investing defensively and why trying to predict where the macro economy is heading is a fool’s errand. I’ve really enjoyed reading Howard’s book as I learned quite a bit from his thoughtful insights on investing intelligently.

[00:01:20] With that, I hope you enjoy today’s episode, covering the investing wisdom of billionaire Howard Marks.

[00:01:30] You are listening to The Investor’s Podcast, where we study the financial markets and read the books that influence self-made billionaires the most. We keep you informed and prepared for the unexpected.

[00:01:50] What is the most important thing in investing? This is the question that Howard Marks would be challenged with when investing for clients in developing a philosophy. Except there is not just one thing when it comes to investing. There is a multitude of different things that are really important, and if we misassess any of them as investors, then we run the risk of having suboptimal outcomes.

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