Howard Marks

Principles are our summary of their public statements.

• Separating Price and Value

  Howard Marks emphasizes that buying a great asset is entirely different from making a good investment. Even the best company becomes a failed investment if purchased at too high a price. Conversely, ordinary assets can yield excellent returns if bought cheaply.

  Supporting quotes

  • “Investment success doesn't come from "buying good things", but rather from "buying things well".”

  A question to consider

  When evaluating my business or investments, am I strictly separating the quality of the asset from its purchase price?

• The Illusion That This Time is Different

  Whenever the market overheats, people believe that the old rules no longer apply. He warns that this optimism drives investors into the greatest danger. History always repeats itself, and fundamental economic laws never disappear.

  Supporting quotes

  • “Market optimism that this time is different is misguided and dangerous.”

  A question to consider

  Am I falling into the baseless belief that this time will be different while observing the current market boom?

• Prioritize consistency over volatility

  Strategy

  Consistently staying in the middle-top tier of performance can lead to superior long-term results compared to swinging between extremes.

  Source acquired.fm/episodes/howard-marks-andrew-marks-something-of-value  (opens in a new tab)

• Counter cyclical capital raising

  Fundraising

  Raise more capital when markets are distressed and assets are cheap, and raise less when markets are booming and assets are expensive.

  Source acquired.fm/episodes/howard-marks-andrew-marks-something-of-value  (opens in a new tab)