Mark Howard

Thursday, 15th September 2011

The lessons of the 2007 crash

Written by George Traganidas Topics: Wealth Building

Howard Marks from Oaktree capital wrote in a memo the lessons that the market crash of 2007 should have thought us. A lot of these lessons are not new ones, but a repetition of old lessons that investors did not learn last time. Or maybe their memory is short term. Maybe more attention should be paid this time and learn these lessons to avoid repeating them next time. Because there will surely be a next time. Here are the lessons:[…]

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Monday, 8th August 2011

This time it is not different

Written by George Traganidas Topics: Wealth Building

Mark Howard of Oaktree Capital Management wrote in one of his memos about the times that are unchanged. Here is his notes:


Why do the mistakes repeat? That’s a good question, but not much of a mystery. First, few investors have been around long enough to recognize reoccurrence of the errors of twenty or forty years ago. And second, the greed that argues for ignoring “the old rules” easily trumps caution; hope truly does spring eternal. That’s especially true when the good times are rolling. The tendency to ignore the rules invariably reaches its apex in periods when following them has cost people money. It is thus, as Galbraith points out, that those who harp on the lessons of the past are dismissed as old fogies. What are some of the recurring mistakes investors make?[…]

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Monday, 8th August 2011

The most important thing

Written by George Traganidas Topics: Wealth Building

The most important thing

Mark Howard of Oaktree Capital Management wrote in one of his memos that a lot of people ask him what is the most important thing he has learned throughout his years of investing. After been asked this question a lot, he decided to compile a list of the answers he has given to various people, because he has given various answers. Here is the list:

  • The most important thing – above all – is the relationship between price and value.
  • The most important thing is a solidly based, strongly held estimate of intrinsic value.

[…]

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Monday, 8th August 2011

How to build a successful partnership

Written by George Traganidas Topics: Wealth Building

Successful Partnership

Mark Howard of Oaktree Capital Management wrote in one of his memos some very good ideas about building a successful partnership:


If an organization is to be the best, it must find, train and retain the best. Not only does turnover drain off your best people, but it also takes their institutional memory and leaves you bogged down in hiring and training their replacements.

We always have placed great emphasis on preventing turnover, and the results are visible – in the very small number of senior professionals who have moved on to other employment in my 25 years in portfolio management, and in the investment performance that my long-term colleagues have produced.[…]

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