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This Investor Raised Billions by Making Complicated Ideas Simple | Howard Marks

David Perell・38 minutes read

Howard Marks emphasizes the importance of quality output within one's control amid the randomness of the world, aiming to provoke readers to think differently and challenging their beliefs. Marks believes in sharing his investing secrets through clear memos and advocates for maintaining high standards in output to stand out in a world where quality is often compromised.

Insights

  • Howard Marks focuses on producing high-quality output within controllable factors, aiming to simplify complex ideas for readers to engage with and challenge their perspectives positively.
  • Marks' evolution in writing, inspired by Warren Buffett's concise style and past thinkers like Peter Bernstein, emphasizes the importance of clear communication, accessibility, and blending qualitative and quantitative knowledge to create valuable content that prompts new ways of thinking.

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Recent questions

  • How does Howard Marks approach writing?

    Howard Marks aims to present complicated ideas in a simple manner that captivates audiences, making them eager to engage. He emphasizes the importance of quality output within one's control amidst the randomness of the world. Marks finds satisfaction in feedback that highlights how his writing has positively impacted readers, making complex concepts more understandable. His writing process involves collecting various ideas and making connections between seemingly unrelated topics to inspire his memos. Marks enjoys the editing process of his writing, refining his work through multiple revisions and seeking feedback from a select group of individuals. He aims to write in a manner that mirrors his speaking style, using common language and contractions to ensure clarity and accessibility for readers.

  • What is the key to success in Howard Marks' view?

    Howard Marks believes that implementation is the key to success, not just knowledge. He emphasizes the importance of sharing his investing secrets through clear memos, confident that taking action on the information provided is crucial. Marks aims to provoke readers to think differently, challenging their existing beliefs and encouraging new perspectives. He advocates for writing about substantial, lasting principles rather than fleeting events to create valuable content. The writer's goal is to present complicated ideas in a simple manner that captivates audiences, making them eager to engage.

  • How did Howard Marks' writing evolve over the years?

    Howard Marks' writing has evolved over the years as he aimed for clarity and depth in conveying ideas. He began creating memos in 1990, sending them to around a hundred clients, despite receiving no feedback. The writer's subscriber count grew from around a hundred in 1990 to 300,000, with the memos being shared widely. Marks started distributing his memos electronically in addition to in writing in 1995 when he began his own firm, Oak Tree. He values the wisdom of past thinkers like Peter Bernstein, incorporating their insights into his own writing on risk management.

  • What influences Howard Marks' writing style?

    Howard Marks admires Warren Buffett's writing style, particularly his concise and humorous approach. Buffett's use of simple language and humor influences Marks' own writing style. The speaker appreciates the crystallized lessons in letters from Buffett and Bezos, like the analogy of learning a handstand over time. Marks highlights the benefits of reasoning by analogy, using vivid visual examples to explain complex concepts in a more accessible manner. He reflects on the evolution of his writing over the years, aiming for clarity and depth in conveying ideas.

  • How does Howard Marks communicate complex concepts?

    Howard Marks communicates complex concepts by reconciling qualitative and quantitative knowledge, creating a unique blend of ideas. He finds satisfaction in feedback that highlights how his writing has positively impacted readers, making complex concepts more understandable. Marks emphasizes the importance of quality output within one's control amidst the randomness of the world. His writing process involves collecting various ideas and making connections between seemingly unrelated topics to inspire his memos. Marks advocates for writing about substantial, lasting principles rather than fleeting events to create valuable content.

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Summary

00:00

"Quality Output Amidst Randomness: Howard Marks' Writing"

  • Howard Marks emphasizes the importance of quality output within one's control amidst the randomness of the world.
  • Marks, known for his clear and concise writing, has gained a significant following over the years, managing over $190 billion in assets.
  • Marks aims to present complicated ideas in a simple manner that captivates audiences, making them eager to engage.
  • The writer's goal is to provoke readers to think differently, challenging their existing beliefs and encouraging new perspectives.
  • Marks finds satisfaction in feedback that highlights how his writing has positively impacted readers, making complex concepts more understandable.
  • Marks' writing process involves collecting various ideas and making connections between seemingly unrelated topics to inspire his memos.
  • An example of Marks' writing process is illustrated through his "Getting Lucky" memo, inspired by a chance encounter with an article on luck.
  • Marks believes in sharing his investing secrets through clear memos, confident that implementation is the key to success, not just knowledge.
  • Marks enjoys the editing process of his writing, refining his work through multiple revisions and seeking feedback from a select group of individuals.
  • Marks aims to write in a manner that mirrors his speaking style, using common language and contractions to ensure clarity and accessibility for readers.

14:58

"From Memos to Principles: Writing with Purpose"

  • The writer began creating memos in 1990, pre-internet and pre-computer era, sending them to around a hundred clients, despite receiving no feedback.
  • The writer's memos started being distributed electronically in addition to in writing in 1995 when they began their own firm, Oak Tree.
  • The writer's subscriber count grew from around a hundred in 1990 to 300,000, with the memos being shared widely.
  • The writer's interest in accounting was sparked in college, leading to a career in the field.
  • At Wharton, the writer took Japanese literature courses, which were taught by a demanding professor, E. Dale Saunders, who significantly improved their writing skills.
  • The writer emphasizes the importance of maintaining high standards in output to distinguish oneself in a world where quality is often compromised.
  • Before writing memos, the writer advises waiting until one has something substantial to say, gained through years of experience and wisdom.
  • When ready to write, the writer suggests focusing on a clear point of view or investment philosophy, speaking from a principle-based voice.
  • The writer advocates for writing about substantial, lasting principles rather than fleeting events to create valuable content.
  • The writer highlights the benefits of reasoning by analogy, using vivid visual examples to explain complex concepts in a more accessible manner.

30:31

"Visuals and Humor: Writing Lessons Learned"

  • The speaker recalls a discussion in Jaipur, India, inspired by a previous conversation in Shanghai.
  • During client meetings, the speaker uses a whiteboard to illustrate concepts, taking a picture for reference.
  • The picture from Shanghai becomes a chapter or idea in "Mastering the Market Cycle."
  • The speaker shows the picture to a friend of a past acquaintance, emphasizing the power of visuals in communication.
  • The speaker admires Warren Buffett's writing style, particularly his concise and humorous approach.
  • Buffett's use of simple language and humor influences the speaker's own writing style.
  • The speaker appreciates the crystallized lessons in letters from Buffett and Bezos, like the analogy of learning a handstand over time.
  • The speaker notes the importance of clear communication and accessibility in writing to benefit readers.
  • The speaker reflects on the evolution of their writing over the years, aiming for clarity and depth in conveying ideas.
  • The speaker values the wisdom of past thinkers like Peter Bernstein, incorporating their insights into their own writing on risk management.

45:18

"Conversations, Recording, Writing: Insights and Challenges"

  • Conversations are likened to an algorithm for randomness, providing an escape from mental mazes.
  • Recording conversations can be beneficial, capturing valuable insights and experiences.
  • Writing is simplified by reconciling qualitative and quantitative knowledge, creating a unique blend of ideas.
  • The challenge in writing lies in reconciling seemingly opposing concepts, adding value and depth to the content.
  • Successful writing prompts readers to think differently, challenging their existing beliefs and knowledge.
  • The essence of writing lies in clarity, humor, engaging topics, and pushing readers to learn new perspectives.
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