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Wall Street fable Howard Marks describes the phone call that changed his life


howard marks
Howard
Marks


Bloomberg
TV



Howard Marks isn’t fearful of unsure assets, so prolonged as the price
is right. 

Marks’ investment firm, Oaktree,
is deliberate one of the heading investors in unsettled debt,
radically riskier debt. 

He founded the organisation in 1995, and given then the firm’s assets
under government have increasing from $5
billion to about $101 billion
. And Marks is estimated to
have a personal net worth of close to $1.97 billion, according to
Forbes
.

He
counts Warren Buffett as a crony and a
fan
When
we see memos from Howard Marks in my mail, they’re the first thing
we open and read,”
 Buffett once said.

And in
an


talk with Julie Segel at Institutional
Investor

, Marks explained the phone call that changed
his life. 

He was asked by his boss to meet up with an financier out in
California named Mike Milken. Milken, whom many consider the
father of high-yield bonds, explained that investing in safe
resources isn’t as smart as it appears, since they can only go
down. 

“If you buy AAA or AA holds they only have direction. If
you buy single B bonds, and they survive, all the surprise
will be on the upside,” he said.

“[You] could issue high produce bonds, they called them junk
in those days, if the betrothed produce was high enough. And
that creates ideal sense,” he added.

It’s all about price, according to Marks, not what you invest
in: 

There’s not such thing as a good investment idea, until you’ve
discussed price. 

Investing good is not a matter of shopping good things, it’s about
shopping things well. And people have to know the difference.
And if you don’t know the disproportion you are in big
trouble. 


Watch the full talk »

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