A few days ago, I was listening to a podcast with Howard Marks.
Howard Marks is the billionaire co-founder and investor behind Oaktree Capital, which manages ~$189bn of assets primarily known for their complex credit investing strategies.
Howard has been writing since the early 90s. Similar to Buffett (who has been writing since the 60s).
He writes at least quarterly to share his thoughts and outlook on the market. Much of it is based on human psychology and history.
When asked why he shares his insights and strategies so openly…
It can’t be implemented easily. Just because you know what it is that I am doing, it does not mean you can do it yourself.
This is the case with much of investing.
You have very sophisticated investors that have 2 things.
- Capital. Lots of it.
- Opportunities. Complex ones.
First, we need to have sizable amounts of capital to even be invited to the table.
No company is going to want some mom and pop involved in the same process of their securities or company.
They only want serious parties involved. Those that have been in the business. And, have done it hundreds if not thousands of times.
They don’t have time to explain every piece of deal terminology.
They want certainty to close. And close quickly.
On that point, we do not get access to the same investment opportunities that Howard and his fund do.
The distressed situations their fund is known for is highly specialized.
Laymen like myself would never even know about those opportunities until the deal is closed and it is the front page of the Wall Street Journal.
Why does this matter?
Well the greater fool is myself more broadly.
I am chasing information constantly.
But, this information cannot be implemented. Yes, his writings are very valuable for folks in finance and studying it.
But, more broadly, most advice we get makes us feel good. Yet, there is no way to implement it.
Is there any point of that information then? If we cannot use it.
It might just be unimplementable, attractive advice.
