The name investor Howard Marks might sound distant, but his story and philosophy have a lot to teach anyone starting out. In this article, you’ll discover why he’s considered a global reference in financial markets.
For those who want to invest more consciously, Marks’ insights are pure gold. He shows that financial success requires patience, preparation, and the courage to follow your own path.
So if you’re looking for inspiration and want to take your first steps toward smarter investing—let’s go!
Who Is Howard Marks and Why Is He So Respected?
Howard Stanley Marks was born in 1946 in Queens, New York. He earned a degree in finance from Wharton (1967) and an MBA from the University of Chicago (1969). He began his career at Citicorp, later focusing on high-yield and distressed debt markets.
In 1995, he founded Oaktree Capital Management, which became the world’s largest distressed-debt investment firm. Today, Marks is the co-chairman of Oaktree and, in 2022, his net worth was estimated at $2.2 billion (Forbes).
How Howard Marks Thinks: The Pillars of His Investment Philosophy
1. Market Cycles
Marks says: “The only thing you can predict about cycles is that they will occur.” Understanding the cycle is key to making wise moves—opportunities come in downturns, caution is needed in upturns.
2. Second-Level Thinking
He believes investors must go beyond the obvious—question the crowd and seek deeper insight before taking action.
3. Risk Comes First
His famous quote: “Risk means more things can happen than will happen.” To him, protecting capital is more important than chasing returns.
4. Psychology and Emotional Control
Marks teaches that you should act contrary to the market: be cautious during euphoria, aggressive during panic.
The Famous Memos: Golden Lessons for Any Investor
Since 1990, Marks has published memos to investors. They’re insightful, simple, and widely read—even by Warren Buffett.
📝 In “The Folly of Certainty” and “Uncertainty,” he talks about the uselessness of predictions and the value of preparing for multiple outcomes.
His analogies with hockey, chess, and quotes like Mark Twain’s “It ain’t what you don’t know that gets you into trouble…” make the messages relatable and sharp.
What Beginners Can Learn from Howard Marks
- Study before investing: Understand intrinsic value, market cycles, and accept uncertainty.
- Master your emotions: Don’t panic when others are afraid, don’t get euphoric when others are greedy.
- Play the long game: Patience is essential—Buffett once said, “Investing is the best business because you don’t have to swing.”
- Forget predictions: Focus on what you can control—price, risk, and resilience.
Howard Marks’ Books Every Investor Should Read
- “The Most Important Thing” — summarizes his core investment principles: value, cycles, second-level thinking.
- “Mastering the Market Cycle” — goes deep into market cycles and how to navigate them.
- “The Most Important Thing Illuminated” — includes annotations and expanded insights, perfect for those starting out.
These books are simple, direct, and ideal for beginners looking for solid foundations.
Fun Facts and Achievements
- Oaktree managed the largest distressed-debt fund in history: $10.9 billion after the 2008 crash.
- In 2019, 62% of Oaktree was acquired by Brookfield, but Marks remains a leading figure.
- His thoughtful, low-profile style made him globally respected, with frequent invitations to major conferences.
How to Apply Howard Marks’ Teachings in Your Life
- Focus on value, not hype: A popular stock isn’t always a good investment.
- Think long-term: Don’t trade constantly—invest with a plan.
- Balance risk and return: Don’t avoid risk, but manage it wisely.
- Ignore forecasts: You can’t predict the market, but you can prepare.
- Control emotions: Stay calm, stick to your strategy, and think clearly.
Be Inspired to Invest with Wisdom
If you’re just starting out, remember: investing isn’t about luck or genius—it’s about preparation, discipline, and patience.
Learn from Howard Marks’ mindset:
- Understand market cycles
- Focus on intrinsic value
- Define your risk tolerance
- Act with awareness, not emotion
As he says: “Sometimes the best choice is to do nothing.” Study, wait, and act when the opportunity is right.
If Howard Marks started with research, patience, and learning—you can too. Your next smart move starts now.
in God we trust