Coping With Cycles – Experienced Voices

“All of investing consists of dealing with the future…and the future is something we can’t know much about. But the limits on our foreknowledge needn’t doom us to failure as long as we acknowledge them and act accordingly…

Knowing where you are in a cycle and what that implies for the future is very different from predicting the timing, extent and shape of the next cyclical move. And so we’d better understand all we can about cycles and their behaviour.” – Howard Marks

Howard Marks is the founder and co-chairman of Oaktree Capital Management, a Los Angeles-based alternative investment firm which he (and his colleague Bruce Karsh) developed into the world’s largest distressed-debt investor.

When it comes to understanding cycles and the ebbs and flows of the marks, he’s your guy as he has seen it all and most importantly he has powered through most of these cycles without losing clients monies or blowing out thanks to his obsession about risk management. There are very few guys like him in the money management industry.

Sources:

You can’t predict. You can prepare.

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