Howard Marks

Howard Marks

Last Update: 11-13-2015

Number of Stocks: 63
Number of New Stocks: 6

Total Value: $4,318 Mil
Q/Q Turnover: 4%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Howard Marks Watch

  • Why Most Investors Fail in the Stock Market

    Throughout the past 30 days of wild volatility, here’s what I didn’t do.


    Panic.

      


  • Gurus Are Buying High-Yield Stocks Like WestRock, Target

    The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener.


    WestRock Co. (WRK) has a trailing dividend yield of 3.77% with a three-year growth rate of 38.90% and a five-year growth rate of 26%. The stock is now trading with a trailing 12-month P/E multiple of 10.50 and an estimated forward P/E multiple of 8.86. During the last 12 months, the stock price has dropped by 48%.

      


  • Market Valuations and Expected Returns Jan. 2016

    The market had its worst January in many years. This has generated quite some fear in the market and has prompted Howard Marks (Trades, Portfolio) written two memos in January: On the Coach and What Does the Market Know? We strongly recommend you to read both if you haven’t done so.


    Regarding to market valuations, we agree with what Steven Romick (Trades, Portfolio) said in his latest quarterly commentary:

      


  • Howard Marks Publishes Memo, 'What Does the Market Know?'

    Howard Marks (Trades, Portfolio), chairman of Oaktree Capital, on Wednesday published another memo in response to questions about his previous memo from last week.

    The latest, "What Does the Market Know?", came after the No. 1 question Marks received during a Bloomberg interview was regarding how worried he was about the market. This memo discusses Ben Graham's concept of the market as a short-term voting machine and long-term weighing machine, the crash of 2008, and how value, psychology and the media play out in falling markets.   


  • Seth Klarman Comments on a Bad 2015

    As you might know, some of Seth Klarman (Trades, Portfolio)'s comments from the 2015 Letter to Investors have been disclosed. It is important to note that, since its inception 33 years ago, this is only the third year in which the fund has had a drawback. Overall, the result of its publicly traded positions was a loss of 6.7%, while the private investment portfolio raised 2.4%. Generally, Klarman is very blunt and straightforward in his comments yet, with a great deal of insight and wisdom, embedded.


    "Value investors must be strong and resilient, as well as independent-minded and sometimes contrary," he wrote. "You don't become a value investor for the group hugs. Indeed, one can go long stretches of time with no positive reinforcement whatsoever. Unlike some other fields of endeavor, in investing you can do the same thing as yesterday but achieve completely different reported results. In the long run, the research and analysis you perform should overcome market forces; the fundamentals ultimately matter. But in the short run, markets can trump effort and insight."

      


  • A Few Thoughts About Investing in Cyclicals

    After so much pain in the oil sector, I have found that it is very important to understand some of the reasons behind the nature of cyclical industries, and as it turns out, most of the hard work has already been done by some of the greatest investors. After reading through these ideas (and with some hindsight), it becomes clear how we could have avoided important losses while investing in these industries' stocks.


    What I draw from these comments can be separated into the descriptive aspect of these industries and then the understanding of what makes them how they are. We understand that cyclicals are industries in which revenues and profits tend to fluctuate, expand and contract on a pattern, which can take several months or years to repeat. Howard Marks (Trades, Portfolio)' comments are very important because they touch upon human nature and psychology, which is why we tend to under or overreact and enforce what is called a self-fulfilling prophecy, in which we inflate and deflate prices based on our expectations of the future.

      


  • Howard Marks' Firm Oaktree Examines Opportunity in Real Estate



  • Seth Klarman on Contrarian Thinking

    As the market keeps suffering losses, several renowned investors have tried to shed some light regarding the direction a true investor must take, such as Howard Marks (Trades, Portfolio) with his most recent memo, "What Does The Market Know?" In times of turbulence, I find it refreshing to re-read some of these investors, and while bear markets are usually when a value investor prefers to enter positions, Seth Klarman (Trades, Portfolio) provides a warning on being contrarian just for the sake of it in his book, "Margin of Safety."


    "Value investing by its very nature is contrarian. Out-of-favor securities may be undervalued; popular securities almost never are. If value is not likely to exist in what the herd is buying, where may it exist? In what they are selling, unaware of, or ignoring. When the herd is selling a security, the market price will fall well beyond reason. Ignored, obscure, or newly created securities may similarly be or become undervalued."

      


  • Dissecting Howard Marks' Latest Memo 'On the Couch'

    With the recent turmoil in the markets, investors can take great benefit from reading something soothing and objective such as Howard Marks' last memo "On the Couch." While I obviously encourage readers to read the whole document, which is about 16 pages long, I found five paragraphs that are worth not only reading but commenting upon.


    "Especially during downdrafts, many investors impute intelligence to the market and look to it to tell them what's going on and what to do about it. This is one of the biggest mistakes you can make. As Ben Graham pointer out, the day-to-day market isn't a fundamental analyst; it's a barometer of investor sentiment. You just can't take it too seriously."

      


  • Howard Marks Discusses Recent Memo, China, 'Manic Depressive' Market

    Howard Marks (Trades, Portfolio), co-chairman of Oaktree Capital Group, discusses with Bloomberg when fear is justified and when the pendulum is going too far in either direction.

      


  • On the Couch

    I woke up early on Saturday, Dec. 12 – the morning after a day of significant declines in stocks, credit and crude oil – with enough thoughts going through my mind to keep me from going back to sleep. Thus I moved to my desk to start a memo that would pull them together. I knew it might be a long time between inception and eventual issuance since every time I dealt with one thought, two more popped into my head. In the end, it took a month to get it done.


    Professor Richard Thaler of the University of Chicago is a leading expert on behavioral economics and decision-making (in fact, he’s such a significant figure in the field that he was given a cameo role in the movie "The Big Short"). He opens his new book, "Misbehaving," with Vilfredo Pareto’s assertion that “the foundation of political economy and, in general, of every social science, is evidently psychology.” I’d apply that equally to the not-so-scientific field of investing.

      


  • The Stock Market Will Return Nothing According to Buffett Indicator: Market Valuations and Expected Returns Jan. 2016

    The stock market indices didn’t do much themselves in 2015. Among S&P 500 companies, slightly more companies were down than up. Energy companies, miners were the worst performers in 2015. The best performers were the high fliers such as Netflix (NASDAQ:NFLX), which was up more than 134%, and Amazon (NASDAQ:AMZN), up 117%.


    Market Valuations as Measured by the Buffett Indicator

      


  • A Conversation Between Two Value Investing Legends – Joel Greenblatt and Howard Marks

    There was an unusual number of successful value investors to come out of the Wharton Business School in the late 1970s.


    Joel Greenblatt was one of those.

      


  • The Risks Today Are Substantial – Howard Marks

    Howard Marks (Trades, Portfolio), chairman and founder of Oaktree Capital, warns that investor behavior has entered the zone of imprudence and thinks that China is the biggest threat to the U.S. economy.


    If you want to know from Marks which stocks are going to do well next year, you’re going to be disappointed. The chairman of Oaktree Capital, one of the most successful investors on Wall Street, does not need to pretend that he can look into the future. Instead, he focuses on the things that are most important to investing for the long run: risk control, a good sense of market cycles and inspiration, which, for example, he finds in the world of sports.

      


  • The Numbers Are the Easy Part

    The thing that most separates the truly great investors from the ones who are merely above average for an extended period of time is not their superior ability in number crunching – all lingo aside, most people with basic numerate skills are able to sort growing, solid, profitable companies from the ones that are not.


    A lot of investors, too, can tell an undervalued company from a company at or above fair value, but this is not the primary difference. Neither is it in the difference between their forecasting skills. Some may be better at predicting global geopolitical – and macro –  scenarios than others, but this is not where the difference is, either.

      


  • Howard Marks: 'There Is Nothing Intelligent to Be Said on the Price of Oil'

    Howard Marks (Trades, Portfolio) discussed his views on bonds, which are down two-thirds from their high, and the price of oil in the long and short term. Interest rate hikes are also "a non-event," he said on CNBC Friday.


      


  • Stocks in Sarah Ketterer's Portfolio With High Dividends

    Sarah Ketterer has been the chief executive officer of Causeway Capital Management since June 2001. She focuses on global equities: International, global, and emerging market. Ketterer and her team begin with a screen of both large and mid-sized companies in the developed international markets.


    Mobile TeleSystems PJSC (MBT)

      


  • Howard Marks Buys Distressed Energy Bonds

    Oaktree Capital’s Howard Marks (Trades, Portfolio) spoke at a Goldman Sachs Group Inc.’s (NYSE:GSJ) U.S. financial services conference in New York and indicated he is interested in the distressed debt market.


    Specifically high-yield bonds of energy companies have slumped and can be had for 60 cents on the dollar, according to the distressed debt specialist. The selloff is caused because of hedges wearing off and companies losing credit lines. The famous distressed investor compares the current environment to the post-Lehman crisis.

      


  • New Release: GuruFocus App for Android and iPhone

    You can’t always sit down at your laptop to check out the latest news, guru trades and analysis from GuruFocus.com. That’s why our developers have brought our members the GuruFocus app, available today for both Android and iPhone.


    We’re excited for you to try this useful new tool that lets you keep up with your investing when you're on the go. Download the app for FREE on your Android phone from Google Play, or on your iPhone at the Apple App Store.

      


  • Howard Marks Interview With Bloomberg

    Co-founder of Oaktree Capital Howard Marks (Trades, Portfolio) recently appeared on Bloomberg. He discussed why he believes the high yield market will turn down, which will create opportunities for investors to acquire assets for cheaper. He also discussed the hedge fund industry as a whole.


    Interview with Bloomberg:

      


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