“We can never be sure, but this seems like a reasonable time to start buying. Things may well go lower. In that case, I hope we’ll have the will to buy more. It makes no sense to say: “I’m not going to buy until we reach bottom.” We never know when we’re at the bottom”
Howard Marks, the billionaire co-founder of Oaktree, thinks the time is right to start buying as the market starts to offer some bargains as the widespread selloff reaches its second year. He says this with the full knowledge that there could be more pain ahead, but he is starting to see some opportunities with prices down so far from their highs.
Interestingly, Marks also shared some views on private equity and questioned whether the average private equity fund could consistently outperform listed funds. Instead, he suggests that private equity has had a great few years but that would be expected for leveraged funds during a bull market. However, he believes it remains an open question of whether they can continue to do it over the long term.
Marks has built a reputation as one of the best investors of this generation and his memo’s are famous in the financial industry. When he talks, it is worth listening. So we wanted to include both of these articles from the Financial Times featuring his latest thinking.
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