I invested a couple of productive hours yesterday studying (notes below) a recent Memo To Clients penned by Oaktree founder Howard Marks (above) – a billionaire investment guru with a fan base rivalling Ray Dalio’s (and not far off Warren Buffett’s). What appeals about Marks is his consistency and humility, qualities clearly evident in this highly readable 18-page Memo.
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Marks, a long-time Value Investor, has adjusted his approach after spending 10 months living with his son Andrew, a fellow investment professional but one who champions Growth. Andrew’s family moved in during lockdown, ensuring many discussions on their shared craft. We read that it is the storied Value investor whose views have adjusted.
There’s enough meat in Marks’s Memo to rival a Brazilian restaurant. Among the juicy bits is support of the over-riding philosophy of our BizNews portfolio whose average holding period is forever. To wit: “When you’re talking about today’s great growth companies the approach to buy in cheap, set a target price, sell as it rises and exit when it reaches the target is dead wrong.”
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The 75-year-old quotes one of his own heroes, Sir John Templeton, who warned that those who claim “it’s different this time” were right only 20% of the time. But added: “Given the rising impact of technology in the 21st Century, I’d bet that percentage is a lot higher today.” It’s never too late to learn – provided you retain humility and keep an open mind.
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