In one of his famous "memos" released on Monday, Howard Marks (Trades, Portfolio), co-chairman of multibillion-dollar asset management firm Oaktree Capital, argued the focus on value versus growth doesn't serve investors well in our fast-changing world.
The paper, titled "Something of Value," began with the guru discussing some silver linings found during the Covid-19 pandemic, notably being able to spend more time with family. His son, whose family moved in with Marks and his wife for several months while their house was being renovated, is also a professional investor. As such, they were able to talk extensively about investing together during this period.
One such conversation regarded the outlook for value investing.
"'Growth' stocks have meaningfully outperformed 'value' for the last 13 years – so long that people are asking me whether it's going to be a permanent condition," Marks wrote. "My extensive discussions with Andrew led me to conclude that the focus on value versus growth doesn't serve investors well in the fast-changing world in which we live. I'll start by describing value investing and how investors might think about value in 2021."
The guru then went on to discuss what value investing is, compared it to growth investing and looked at the topic from other vantage points.
Read Marks' full memo here.
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