Howard Marks (1948- )

Born: April 23, 1948 (New York) Education: University of Pennsylvania (Wharton), University of Chicago Career: Co-founder, Oaktree Capital Management

Overview

Howard Marks co-founded Oaktree Capital Management in 1995 with $10M. Today Oaktree manages $150B+ in assets, making it one of the world's largest alternative asset managers. His quarterly memos to clients are legendary in the investment world.

Key Achievements

Metric	Value
Founded Oaktree	1995
AUM	$150B+
Investment Style	Value, distressed, contrarian
Track Record	Consistently above benchmarks

Key Contributions

1. The Most Important Thing

Marks wrote "The Most Important Thing" (2011), a collection of投资 insights. His central theme: second-level thinking.

2. Second-Level Thinking

First-level thinking: "Company X will do well." Second-level thinking: "Everyone thinks Company X will do well, so it's overpriced."

3. Risk Management

Marks is obsessed with risk:

"The most important thing is risk management."
"The way to build long-term returns is to preserve capital."

4. The Pendulum

Markets swing between fear and greed, between under- and over-valuation.

The Most Important Thing

Marks identifies 20+ "most important things," including:

Second-level thinking
Understanding market cycles
Value (the core)
Bargain-hunting
Patient, contrarian investing
Avoiding笨蛋

Famous Quotes

"The most important thing is not to be right — it's to be right when it matters."

"The market is a pendulum that swings between unsustainable optimism and unsustainable pessimism."

"The way to build superior long-term returns is through preservation of capital — not through high-beta strategies."

"To achieve superior results, you have to do something different from the crowd."

Famous Memos

Marks' quarterly memos are famous for their insight. Notable memos:

"The Most Important Thing" (2003)

This memo introduced second-level thinking to a wide audience.

"Looking Beyond" (2017)

On the dangers of passive investing.

Various Crisis Memos

Marks wrote reassuring, rational memos during 2008 and 2020.

Oaktree's Strategy

Asset Classes

Distressed debt
Private equity
Real estate
High yield bonds
Convertible securities

Philosophy

Risk-averse (preserving capital)
Value-oriented (buying below intrinsic)
Contrarian (buying when others fear)
Patient (waiting for right price)

Marks vs. Buffett

Aspect	Marks	Buffett
Education	Wharton, Chicago	Columbia
Primary Market	Distressed	Public equities
Key Concept	Second-level thinking	Moat, quality
Risk Focus	Capital preservation	Quality + price
Return	~16% annually	~20% annually

Books

The Most Important Thing (2011)

A collection of memos organized into a coherent philosophy. Warren Buffett called it "must reading."

Mastering the Market Cycle (2018)

On understanding and navigating market cycles.

Howard Marks