Howard Marks, co-founder of Oaktree Capital Management, is one of the most respected voices in modern investing. His memos — read by Warren Buffett himself — focus on understanding risk, market cycles, and investor psychology. For Malaysian investors, his lessons encourage wisdom, patience, and emotional control in both good and bad times.
💡 “You can’t predict, but you can prepare.” — Howard Marks
1️⃣ Risk Is Not About Volatility — It’s About Losing Money
Marks challenges the idea that volatility equals risk. For him, true risk is the chance of permanent capital loss. Investors should focus on protecting their downside before chasing higher returns.
🛡️ Malaysians can apply this by selecting well-managed funds with proven track records — focusing on capital preservation first, growth second.
2️⃣ The Market Moves in Cycles
Marks teaches that markets move through predictable cycles — optimism and fear, greed and caution. Recognizing where we are in the cycle helps investors avoid overconfidence at market peaks or panic during downturns.
📉 Malaysian investors can avoid emotional mistakes by staying invested through all cycles — using dollar-cost averaging and long-term planning to smooth out volatility.
3️⃣ Avoid the Crowd
Marks believes that great investors think independently. Following the crowd often leads to buying high and selling low.
🚀 For Malaysians, this means trusting your plan — not reacting to short-term market news or herd behavior. The best results come from calm, consistent decisions.
4️⃣ Patience Creates Opportunity
Marks reminds us that waiting for the right opportunity is often more rewarding than constantly reacting. Investing is not about speed — it’s about timing, preparation, and discipline.
🕰️ Malaysians can adopt this by reviewing their portfolios regularly, not frequently switching funds or chasing returns, but letting time and compounding do their work.
5️⃣ Humility Is Key to Survival
Marks stresses that no one can predict the market perfectly. Instead of trying to be right all the time, investors should focus on being prepared when things go wrong.
🎯 Malaysian investors can practice humility by keeping realistic expectations and balancing portfolios with both growth and safety in mind.
Howard Marks reminds us that successful investing is not about forecasting the future — it’s about managing risk, understanding cycles, and staying calm when others lose focus.