New Issue of Graham & Doddsville, a Value Investing Newsletter from the Students of Columbia Business School
Download the Fall 2009 IssueAn excerpt from the Fall 2009 issue:
Feature Interview: Howard Marks, Co-Founder and Chairman, Oaktree Capital Management
"Do An Excellent Job at a Few Things"
G&D: It seems that most investors focus more on the return side of the equation than on risk, whereas you take the opposite perspective.
Howard Marks: That is important, and that is one of the reasons we are still around. Sun Tzu said if you sit by the river long enough, you’ll see the bodies of your enemies float by. The key is “long enough.” If you live long enough, you have to be the survivor. When I was a kid, we didn’t have the video games you have today, so we used to listen to comedy records. One of the greatest ones was Mel Brooks doing the 2000 year old man. Carl Reiner says to him, “how did you get to be the world’s oldest man?” And he says, “Simple. Don’t die.” How do you get to be the world’s oldest investor? The answer is don’t crap out.
Founded in 1995,Oaktree manages over $60 billion of investments in a variety of less efficient arenas, including High Yield Debt, Distressed Debt, and Private Equity, among other asset classes. Oaktree’s excellent long-term track record and Mr. Marks’ unique investment philosophy have resulted in a loyal following of investment professionals. Since starting his career in 1969, Mr. Marks has seen a range of ups and downs in the financial markets, from the growth of the high yield bond market to the current leverage meltdown.