3 Book Recommendations from Billionaire Howard Marks that will Make You Smarter

Howard Marks is the billionaire cofounder and chairman of Oaktree Capital, a distressed debt investment firm which has seen its assets under management grown up to $100 billion. Marks is widely known in the investor community for his investment memos that he started writing to his clients in 1990 and provide detailed views and insights into the economy.

Marks is also one of the smartest individuals and his 1 hour lecture on The Most Important Thing: Origins and Inspirations is the best 1 hour you might spend to learn investing.

Howard Marks is known to be a profound reader and in his own words,

If you read widely, you can learn from people whose ideas merit publishing”.

In his masterpiece, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, Marks gives a glimpse of the books he has been influenced by. These books are masterpieces in their own accord and can help you to become smarter and create wealth for yourself

  1. Winning the Loser’s Game: Timeless Strategies for Successful Investing — According to Marks, “If you think you can see the future and the world is going to go according to your decisions, go for winner’s tennis. But if you think the world is full of randomness and uncertainty, spend your time trying to avoid losers.” Oaktree believes in the latter model, Marks said “If we avoid the losers, the winners will take care of themselves.”
  2. A Short History of Financial Euphoria — In this, the world renowned economist John Kenneth Galbraith in his witty and humorous way selectively traces episodes of speculation resulting in financial debacles from the Tulipomania of the mid-17th century through the Crash of ‘87.
  3. Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets
“The people that I think are great investors are really characterized by exceptionally low levels of loss and infrequency of bad years. That is one of the reasons why we have to think of great investing in terms of a long time span. Short-term performance is an imposter. The investment business is full of people who got famous for being right once in a row. If you read Fooled by Randomness by [Nassim] Taleb, you understand that being right once proves nothing. You can be right once through nothing but luck.”

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