Howard Marks

Howard Marks

Last Update: 05-16-2016

Number of Stocks: 64
Number of New Stocks: 7

Total Value: $2,423 Mil
Q/Q Turnover: 8%

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

Howard Marks Watch

  • Howard Marks Memo: Economic Reality

    In 1977, responding to the difficult energy outlook brought on by the Arab Oil Embargo, President Jimmy Carter created the position of Secretary of Energy and chose James Schlesinger as America’s first “energy czar.” Previously Schlesinger had served as Chairman of the Atomic Energy Commission, Director of Central Intelligence, and Secretary of Defense, and in his early days he taught economics at the University of Virginia. I was tickled by a story – undoubtedly apocryphal – about his days in academia that made the rounds when Schlesinger was in his new energy post.


  • Liquidity and Frozen Ice Theory

  • Howard Marks Buys Buffett's Kinder Morgan, Yahoo! Inc., WPX Energy

    Oaktree investor and author of widely read memos, Howard Marks (Trades, Portfolio), disclosed his first-quarter portfolio activity Monday morning that included buying seven new stocks.

    Marks’ aggregate portfolio has a fair value of $2.4 billion. It lists 64 equity positions that are 28% concentrated in the consumer cyclical sector and 26% concentrated in the financial services sector as of the end of the first quarter.


  • Marks: Ignoring Cycles Is the Most Dangerous Thing Investors Can Do

    “I think it’s essential to remember that just about everything is cyclical. There’s little I’m certain of, but these things are true: Cycles always prevail eventually. Nothing goes in one direction forever. Trees don’t grow to the sky. Few things go to zero. And there's little that’s as dangerous for investor health as insistence on extrapolating today’s events into the future.”


  • Quality Guru Stocks Include Amgen, Comcast

    According to GuruFocus’ All-in-One Screener, the following stocks have a high business predictability rating and at least five gurus are shareholders in the companies.

    WestRock Co. (WRK)


  • These 10 Principles Will Help You Beat the Market

    Vijay Kedia is a famous Indian value investor who has over 20 years of experience in the market. Vijay in Hindi means "victory." In 20 years he turned an investment of $20,000 into $100 million net worth today.

    The following is based on his recent talk at an Indian business school. You can watch the video here.


  • Macroeconomics and Revisiting Howard Marks' January Memo

    It wasn’t long ago people worried that China might set off another global recession. In mid-January, headlines like, “U.S. stocks post worst 10-day start to a year in history,” and ”$1 trillion erased from stocks so far in 2016” showed up on financial websites across the internet. The S&P 500 (SPY) had lost 122 points and 6% in the first 10 days of 2016. Falling oil prices and slowing growth in China were on many investors’ minds.

    In the same timeframe, Howard Marks (Trades, Portfolio) published a memo “On the Couch” where he came to the conclusion that the January swoon might be a buying opportunity.


  • Mattress, Roulette or Somewhere in Between: Investing With a Margin of Safety

    Does more risk equal more return?

    Conventional investment advice suggests that high returns are only achieved when taking high risks. This makes sense to some degree.


  • Howard Marks Raises Stake in Taiwan Semiconductors

    Guru Howard Marks (Trades, Portfolio), Oaktree Capital co-founder, billionaire and author of "The Most Important Thing,"  upped his stake in Taiwan Semiconductors Manufacturing Co. (NYSE:TSM) with the addition of 1,916,718 shares to his portfolio in the fourth quarter of 2015.

    Taiwan Semiconductors was established in 1987. The company engages in manufacturing, selling, packaging, testing and production of computer-aided, integrated circuits and other semiconductor devices. To better manage the company’s long-term growth, Taiwan Semiconductors is currently investing in solar energy-related industries. With differentiated technology offerings and unique value propositions, Taiwan Semiconductors will pursue new opportunities in the future in this field, which is a good sign for the environment.


  • Howard Marks and The Few Eternal Truths

    Just after the dot-com bubble burst in 1999, Howard Marks (Trades, Portfolio) wrote his impressions on where the market would go and what were the most rational steps an investor could follow. It is important to note that Marks never mentioned where the market would go, just that the eternal truths of investing would become critical to navigate through uncertainty.

    What I like about Marks' comments is that generally they are rational and provide calm for investors in times of high volatility.


  • Should We Worry About Another 2008 Crash?

    The stock market has been quite volatile so far this year. The S&P 500 has dropped from 2043 to only 1829 in the middle of February, then climbed to nearly 1960 at the time of this writing. With the plunge in commodity prices, especially oil along with many unstable events in the world, investors have been worrying about another global financial crisis like the one in 2008. If we got into a similar situation from 2008, the financial world would fall apart and the domino effects will influence the whole global financial system in a very negative way.

    The world is facing a lot of challenges, including things we have never experienced before. First, several large central banks have imposed negative interest rates in order to boost their economies, including the European Union, Switzerland, Denmark and Japan. The European Central Bank and Japan has used negative rates to fuel growth and raise inflation, while negative rates would help Denmark and Switzerland prevent their currencies from increasing in value too much.


  • Howard Marks on the Effects of Investor Sentiment

    I have discussed investment psychology in my recent article titled “The Lesson of Investors’ Psychology,” about the psychological mistakes that investors often make in their thinking and investing behaviours. In this article, I would like to focus on several important points in Howard Marks (Trades, Portfolio)’ recent memo: “On the Couch,” so that we can learn more from him to avoid mistakes in our investment analysis.

    In his memo, Marks showed us his favourite sentence in a cartoon: “Everything that was good for the market yesterday is no good for it today.” Indeed, everyone knows that the Chinese overheating economy and excessive investment in fixed assets would lead to a hard landing and even recession. But it was only until last August that investors experienced the collapse of A-shares. The fear spread to the U.S., making it decline 11% in the week from Aug. 17 to 25. Marks wrote in his memo: “In 2015, we saw old problem get worse, new ones arise, and a general absence of anything to feel good about. The sense of hopelessness regarding problems like ISIS and runaway immigration is something investors handle particularly poorly. In August, the events in China sparked a revival of risk aversion and fear, with effects that carried around the world for a couple of weeks. And with the door opened to fearful interpretations, Pollyanna tolerance gave way to widespread negativism.”


  • The Lesson of Investors' Psychology

    Many investors should be aware of the famous saying by Benjamin Graham: "The investor’s chief problem – even his worst enemy – is likely to be himself."

    Indeed, we, as passive investors, read the same newspapers, read the same economic data and acknowledge similar news. However, we might interpret the data differently and act differently as well. We decide our own financial situations by buying and selling on the market ourselves, of course, some with input from financial advisers.


  • Howard Marks: Investors Dealing With 'Cosmic Issues,' Scared by Donald Trump

    Donald Trump has upped the ante on fear-inducing speech from the presidential candidates, contributing to increased apprehension for investors, Oaktree's Howard Marks (Trades, Portfolio) told Bloomberg Thursday morning. Marks also discussed the one-off issues disrupting predictable market cycles, the value of ETFs and the reasons for volatility, among other topics.

    In the second video, he comments on his almost $1 billion gain he has made from an early investment in Jeffrey Gundlach's firm in 2009 and the possibility of risk in the high-yield market. "The only intelligent form of investing is long-term investing," Marks said.


  • Majority of Howard Marks' New Investments Were in Commodity-Related Stocks

    During the fourth quarter, most of Howard Marks (Trades, Portfolio)’ new investments at Oaktree Capital were commodity stocks, with five out of the nine purchases coming from the sector.

    Marks’ latest memo titled “What Does the Market Know?” addresses whether the investor and author is worried about the current state of the market. One quote from the memo may explain Marks’ large investments in commodities.  

  • Robert Karr Sells Stake in Mead Johnson Nutrition

    Guru Robert Karr (Trades, Portfolio), founder of Joho Capital, bought four new stakes in the fourth quarter, but his biggest deal was a divestiture.

    Karr’s most noteworthy fourth-quarter transaction was the sale of his 647,300-share stake in Mead Johnson Nutrition Co. (NYSE:MJN), a Glenview, Illinois-based pediatric nutrition company, for an average price of $78.95 per share. The deal had a -13.05% impact on Karr’s portfolio.


  • Howard Marks Invests in Banner Corp. After Price Plummets

    Guru Howard Marks (Trades, Portfolio) is the co-founder of Oaktree Capital, an investment firm that was formed in 1995 by a group of individuals who had been investing together since the mid-1980s in high yield bonds, convertible securities, distressed debt, real estate, control investments and listed equities. Marks is also the author of "The Most Important Thing," which is a great book that focuses on what is important when it comes to making investments. Marks has an estimated net worth of $1.89 billion according to

    In the fourth quarter of 2015, Marks purchased 2,598,988 shares in Banner Corp. (NASDAQ:BANR).


  • Why Most Investors Fail in the Stock Market

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



  • 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:


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