We have extensively covered the wisdom and writings of Oaktree's Howard Marks on the blog. In his most recent commentary, Marks puts into words quite possibly the greatest piece of investment advice I have ever read:
"At What Price?That question - at what price? - isn't just the right question to ask about bonds versus stocks today. It's the right question regarding every investment at every point in time.I try every chance I get to convince people that in investing, there's no such thing as a good idea...or a bad idea. Anything can be a good idea at one price and time, and a bad one at another."
"It has been demonstrated time and time again that no asset is so good that it can't become a bad investment if bought at too high a price. And there are few assets so bad that they can't be a good investment when bought cheap enough ... No asset class or investment has the birthright of a high return. It's only attractive if it's priced right."
"Risk is not inherent in an investment; it is always relative to price paid. Uncertainty is not the same as risk. Indeed, when great uncertainty - such as in the Fall of 2008 - drive security prices to especially low levels, they often become less risk investments."
"The future is never clear; you pay a very high price in the stock market for a cheery consensus. Uncertainty is the friend of the buyer of long-term values."