Howard Marks: The Greatest Advantage In This Business Is Having Ten-Year Money

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Here’s a great excerpt from Howard Marks’ recent interview on Real Vision. During the interview Marks explains how the structure of the Oaktree Capital Funds protects investors from themselves when the ‘herd’ wants to withdraw funds saying:

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“First of all we have the confidence of our investors. Secondly, the money we’re talking about is in closed-end funds where we don’t have to worry about people withdrawing. So that’s what you talked about having the confidence of your investors. The greatest advantage in this business is having ten-year money because you know given the errors of the herd the pressure to sell is always greatest at the bottom and if you have ten year money you don’t have to succumb to it.”

You can watch the Real Vision excerpt here:

(Source: YouTube)

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Tobias Carlisle is the founder of The Acquirer’s Multiple®. He is also the founder of Acquirers Funds®. The Acquirer’s Multiple® is the valuation ratio used to find attractive takeover candidates.