Episode
#338: Howard Marks — How to Invest with Clear Thinking
1:58:31
Published: Tue Sep 25 2018
Description
Howard Marks (@howardmarksbook) is co-chairman and co-founder of Oaktree Capital Management, a leading investment firm with more than $120 billion in assets. He is the author of the new book Mastering the Market Cycle: Getting the Odds on Your Side, and his previous book on investing, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, was a critically acclaimed bestseller. Warren Buffett has written of Howard Marks: "When I see memos from Howard Marks in my mail, they're the first thing I open and read. I always learn something." Marks holds a B.S.Ec. degree from the Wharton School of the University of Pennsylvania with a major in finance and an M.B.A. in accounting and marketing from the University of Chicago.In this conversation, we discuss:How his firm was poised to capitalize on the bubble in 2008 and put massive amounts of capital to work.His thoughts on understanding market cycles for making better decisions.The three stages of a bull market.Newsletters he reads.Thoughts on Bitcoin and cryptocurrencies.Much, much more...Studying what Howard says transcends the world of investing—it's really a study in clearer thinking. I hope you enjoy and learn as much as I did!This episode is brought to you by Inktel. Ever since I wrote The 4-Hour Workweek, I've been frequently asked about how I choose to delegate tasks. At the root of many of my decisions is a simple question: "How can I invest money to improve my quality of life?" Or "how can I spend moderate money to save significant time?"Inktel is one of those investments. They are a turnkey solution for all of your customer care needs. Their team answers more than 1 million customer service requests each year. They can also interact with your customers across all platforms, including email, phone, social media, text, and chat.Inktel removes the logistics and headache of customer communication, allowing you to grow your business by focusing on your strengths. And as a listener of this podcast, you can get up to $10,000 off your start-up fees and costs waived by visiting inktel.com/tim. This podcast is also brought to you by Helix Sleep. I recently moved into a new home and needed new beds, and I purchased mattresses from Helix Sleep.It offers mattresses personalized to your preferences and sleeping style — without costing thousands of dollars. Visit Helixsleep.com/TIM and take the simple 2-3 minute sleep quiz to get started, and the team there will match you to a mattress you'll love.Its customer service makes all the difference. The mattress arrives within a week, and the shipping is completely free. You can try the mattress for 100 nights, and if you're not happy, they'll pick it up and offer a full refund. To personalize your sleep experience, visit Helixsleep.com/TIM and you'll receive up to $125 off your custom mattress.***If you enjoy the podcast, would you please consider leaving a short review on Apple Podcasts/iTunes? It takes less than 60 seconds, and it really makes a difference in helping to convince hard-to-get guests. I also love reading the reviews!For show notes and past guests, please visit tim.blog/podcast.Sign up for Tim’s email newsletter (“5-Bullet Friday”) at tim.blog/friday.For transcripts of episodes, go to tim.blog/transcripts.Interested in sponsoring the podcast? Visit tim.blog/sponsor and fill out the form.Discover Tim’s books: tim.blog/books.Follow Tim:Twitter: twitter.com/tferriss Instagram: instagram.com/timferrissFacebook: facebook.com/timferriss YouTube: youtube.com/timferrissPast guests on The Tim Ferriss Show include Jerry Seinfeld, Hugh Jackman, Dr. Jane Goodall, LeBron James, Kevin Hart, Doris Kearns Goodwin, Jamie Foxx, Matthew McConaughey, Esther Perel, Elizabeth Gilbert, Terry Crews, Sia, Yuval Noah Harari, Malcolm Gladwell, Madeleine Albright, Cheryl Strayed, Jim Collins, Mary Karr, Maria Popova, Sam Harris, Michael Phelps, Bob Iger, Edward Norton, Arnold Schwarzenegger, Neil Strauss, Ken Burns, Maria Sharapova, Marc Andreessen, Neil Gaiman, Neil de Grasse Tyson, Jocko Willink, Daniel Ek, Kelly Slater, Dr. Peter Attia, Seth Godin, Howard Marks, Dr. Brené Brown, Eric Schmidt, Michael Lewis, Joe Gebbia, Michael Pollan, Dr. Jordan Peterson, Vince Vaughn, Brian Koppelman, Ramit Sethi, Dax Shepard, Tony Robbins, Jim Dethmer, Dan Harris, Ray Dalio, Naval Ravikant, Vitalik Buterin, Elizabeth Lesser, Amanda Palmer, Katie Haun, Sir Richard Branson, Chuck Palahniuk, Arianna Huffington, Reid Hoffman, Bill Burr, Whitney Cummings, Rick Rubin, Dr. Vivek Murthy, Darren Aronofsky, and many more.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Chapters
Howard Marks, co-founder of Oak Tree Capital Management, discusses his new book "Mastering the Market Cycle: Getting the Odds on Your Side."
00:00 - 06:34 (06:34)
Summary
Howard Marks, co-founder of Oak Tree Capital Management, discusses his new book "Mastering the Market Cycle: Getting the Odds on Your Side." In this episode, he covers a wide range of topics, including the stages of a bull market, understanding market cycles for making better decisions, and his thoughts on bitcoin and crypto.
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
The interviewee recalls how he and his partner sensed that the world wasn't running right prior to the 2008 financial crisis, proving that it's important to consider likely scenarios and prepare for them, rather than solely relying on prediction.
06:34 - 13:53 (07:18)
Summary
The interviewee recalls how he and his partner sensed that the world wasn't running right prior to the 2008 financial crisis, proving that it's important to consider likely scenarios and prepare for them, rather than solely relying on prediction.
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
Howard Marks, co-founder of Oaktree Capital Management, discusses the importance of understanding market cycles and risk when investing.
13:53 - 24:30 (10:37)
Summary
Howard Marks, co-founder of Oaktree Capital Management, discusses the importance of understanding market cycles and risk when investing. He emphasizes the need to assess oneself to overcome inherent biases and to be a second-level thinker.
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
The success of a partnership lies in shared values and complementary skills rather than contradictory values and competencies.
24:31 - 30:06 (05:35)
Summary
The success of a partnership lies in shared values and complementary skills rather than contradictory values and competencies. An example of complementary skills is in the highly analytical and competitive nature of a chess player who is able to make good investment decisions.
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
In order to avoid arguments in high stakes partnership or business scenarios, it is important to evaluate a potential partner's ability to handle stress and respect each other's opinions.
30:06 - 38:08 (08:01)
Summary
In order to avoid arguments in high stakes partnership or business scenarios, it is important to evaluate a potential partner's ability to handle stress and respect each other's opinions. Respect, communication, and focusing on the end goal are key to long-lasting partnerships.
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
People should not treat all predictions as equally likely to be correct and should be aware of the limited knowledge they have.
38:09 - 46:31 (08:21)
Summary
People should not treat all predictions as equally likely to be correct and should be aware of the limited knowledge they have. Nicholas Taleb's book "Fooled by Randomness" is recommended for cultivating this awareness.
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
Judgment is essential in decision making because it involves analyzing information and knowing when to act on it.
46:31 - 57:09 (10:38)
Summary
Judgment is essential in decision making because it involves analyzing information and knowing when to act on it. Striking a balance between being too sure and too unsure is necessary in making successful decisions.
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
Howard Marks discusses the current state of the economic recovery and bull market and emphasizes the importance of market assessment and paying attention to the price you pay for investments.
57:09 - 1:09:29 (12:19)
Summary
Howard Marks discusses the current state of the economic recovery and bull market and emphasizes the importance of market assessment and paying attention to the price you pay for investments. He suggests using a checklist to take the temperature of the market and identifying indicators such as interest level at cocktail parties and fund selling patterns.
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
Summary
The economy is functioning at a high level.
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
In this podcast, the host discusses how our choice in games can reflect our risk tolerance and aversion.
1:18:00 - 1:26:06 (08:05)
Summary
In this podcast, the host discusses how our choice in games can reflect our risk tolerance and aversion. He shares insights about games like chess, bridge, poker, backgammon, and craps and how they can help in assessing one's risk-taking ability for larger investments.
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
Howard Marks emphasizes the importance of accepting realities, dealing with things as they are, and being mindful of repetitive market cycles in investing during low returns.
1:26:06 - 1:32:58 (06:52)
Summary
Howard Marks emphasizes the importance of accepting realities, dealing with things as they are, and being mindful of repetitive market cycles in investing during low returns. He also shares insights from Peter Bernstein's memos and Ray Dalio's book "Principles."
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
Howard Marks discusses the importance of second-level thinking in investing, which involves considering not just how an event will impact the market, but how the market is expecting it to impact the market.
1:32:59 - 1:45:36 (12:37)
Summary
Howard Marks discusses the importance of second-level thinking in investing, which involves considering not just how an event will impact the market, but how the market is expecting it to impact the market. He also recommends broadening one's knowledge beyond investing and credit, citing "Lessons of History" by Will and Ariel Durant and "Grant's Interest Rate Observer" as informative reads.
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
In this episode, Tim Ferriss talks to Howard Marks, an American investor who is the co-founder and co-chairman of Oaktree Capital Management.
1:45:37 - 1:56:37 (10:59)
Summary
In this episode, Tim Ferriss talks to Howard Marks, an American investor who is the co-founder and co-chairman of Oaktree Capital Management. Howard shares valuable insights on cycles and excesses in the economy, and how to invest with clear thinking.
Episode#338: Howard Marks — How to Invest with Clear Thinking
PodcastThe Tim Ferriss Show
Ink Tell provides customer service for e-commerce and tech companies as a turnkey solution, allowing businesses to focus on their strengths and grow.
1:56:37 - 1:58:24 (01:46)
Summary
Ink Tell provides customer service for e-commerce and tech companies as a turnkey solution, allowing businesses to focus on their strengths and grow. Ink Tell trains customer service reps to know businesses and products inside and out, answering over a million customer service requests annually across all platforms including email, phone, social media, text and chat.