Most investors want above-average returns — but very few stop to think
about what that actually requires. In this video, I break down Howard
Marks’ investment philosophy: the core principles that have guided
Oaktree Capital for decades.
We cover:
– The first question every investor must honestly answer
– Why market efficiency changes everything about your strategy
– The real definition of risk (and why volatility isn’t it)
– Why macro forecasting is mostly an illusion
– Fewer losers or more winners — which investor are you?
Whether you’re managing your own portfolio or just starting to think
seriously about investing, this is the mental framework worth building
everything else on.
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📌 CHAPTERS
00:00 Intro
00:34 Do you Settle for Average, or Above Average?
01:15 A Creed
02:00 Do You Believe in Efficient Markets?
04:50 The Case Against Average
06:24 Where Returns Come From
08:29 Will You Bet On Macro?
10:36 Where Does Outperformance Come From?
13:26 What Is Risk?
15:26 Risk Management
17:09 Two Ways To Pursue Superior Returns
18:04 The 3 Approaches Available
18:15 Know Yourself
─────────────────────────────
Howard Marks Books:
– The Most Important Thing:
– Mastering the Market Cycles:
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Most of us were never taught how money works. Not at school. Not at home. And not by the financial industry. This is where I think out loud about building financial freedom — through videos, tutorials, and book reviews — test ideas against real experience, and share what actually works. You are not separated from your goals by a number of years, but by a number of decisions.
__________________
► WEBSITE:
► Podcast:
► RECOMMENDED BOOKS:
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___________________
Master Your Finances.
Alessandro Baroni
#HowardMarks #InvestmentPhilosophy #Investing #ValueInvesting
#OaktreeCapital #behavioralfinance
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CREDITS: NBIM, 2024. OAKTREE CAPITAL MANAGEMENT, 2024.
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“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” — Mark Twain
This is such a fantastic lecture
Howard Marks is my favorite. 👍
Efficient market theory can’t be true or else there wouldn’t be people making money
Timestamps (Powered by SITRAKA AI)
00:04 – Investment success requires a conscious choice between average and above-average returns.
02:24 – Market efficiency challenges individual investors to outperform the consensus.
04:55 – Investors struggle between passive and active strategies affecting performance.
07:15 – Deviant perception is key to outperforming average market returns.
09:32 – Macro forecasting often misleads investors; bottom-up analysis provides a knowledge advantage.
11:41 – Investors' overconfidence in forecasting leads to significant risks.
13:55 – Understanding risk is essential for successful investing.
16:01 – Investors struggle with balancing risk and returns.
18:11 – Investment philosophy shapes collective direction and goals at Oaktree.
Superb video/take.
Watching this with my pants off
I don't believe in the efficient market. Human emotion heavily push prices lower and higher than they should be.
The efficient market theory is goofy
The Dean of Value Investing 🙏🏽
Howard the master
Wealth generation is very simple. You don’t have to listen to every YouTube channel or follow Wall Street investors. The first step is to train your mind to think long term, which can happen if you start reading books, exercising, and making sure you learn new skills and languages. Without these, it becomes difficult to train your mind, and your main focus will remain linear thinking, through which wealth building becomes nearly impossible for retail investors. Once you train your mind, you will begin to think about making life simpler, becoming fearless, and focusing on developing skills. You will realize that, to generate wealth, one should outsource the task to qualified CEOs of companies who are world-class at managing, building teams, and innovating every day to help consumers. You can find many of these companies among the top 500 profit-making companies represented by the VOO. One will eventually see the results of all the hard work and mindset training by holding VOO over the long term. If you are trading, you are competing with computer scientists, mathematicians, physicists, and other highly intelligent science and math professionals, making it extremely difficult to compete because they have the knowledge and resources to succeed.
14:55 isnt it volatility? 😅
Risk management is the biggest marketing gag…
Everyone who informs you knows that he has to have an emergency fund and the stock deposit should not get touched.. you dont need an expensive active managemend
Average and ending above average 😉
This presentation reminds me of Warren Buffett
Mr. Buffett stated that you don't have to be very-smart; just don't do dumb-stuff.
💯🇬🇧
Absolute master class and a fantastic share…had to subscribe
🇿🇦🌍👌🏾🌍🇿🇦
This was awesome.
Privet credit will bring Howard back down to earth destroyed.
This video was amazing, learned a lot.
I believe in the wisdom of the market 95% of the time. The market is my instructor because in order to invest in the market someone in your bloodline had to create an economic surplus and then they delayed gratification by investing that money in the stock market. Hence natural selection of the Darwinian kind is taking place even before you set foot in the market.
Great
scientific awesome 👏
Appreciated