Well-known investor Howard Marks at Oaktree Capital is known as a conservative investor, but he has now shifted his approach towards the market. After a fall of more than 18 percent in the S&P 500 so far this year, there are now good buying opportunities, according to Marks.
“Today I started to act aggressively,” he said in an interview with the Financial Times.
In 1995, Marks was one of the founders of Oaktree Capital, which today is known as the “real force” in corporate bonds. The recipe for the management giant was to buy good companies with bad credits, and be proactive when others aren’t. They now manage $164 billion.
“Everything we buy now is a lot cheaper than it was 6 or 12 months ago,” Marks was quoted as saying by the Financial Times. He also emphasized that they do not make investments based on macroeconomic expectations and that the idea of market timing is a bad idea.
The manager said – I think waiting at the bottom is a terrible idea, the market could still be cheaper, in which case we will buy more.
Oaktree’s investments are primarily in bonds, but it also has smaller investments in other asset classes such as listed stocks and private equity. In the interview, he took the opportunity to warn against the latter, and believes that the good results are due to the high debt ratio and low interest rates combined with a ten-year bull market.
Marks is also not optimistic on behalf of cryptocurrency and believes that it may be more difficult in the future.
The better the market goes, the more people will look at things like cryptocurrencies. They go from saying that something can be saying that something has become probable. Marx said this when you get into trouble.
“I think that assets that have no cash flow have no fundamental value,” the manager continued, and are on the same page as Gates and Buffett in criticizing cryptocurrencies.
The Oracle of Omaha is also a well-known proponent of the signs and was once full of investor praise.
“If I ever get an email from Howard Marks, it’s the first email I read. I always learn something new and the same can be said about his book,” Buffett previously said.