Podcast Notes Key Takeaways

• If you make a mistake, don’t get down on yourself
  • Realize they happen, examine your process, and correct for the future
• Oaktree Capital’s motto – “If we avoid the losers, winners take care of themselves”
• What you prioritize, you have a better chance of accomplishing
  • With investing –“One of the reasons we’re so good at controlling risk, is because we put risk control first”
• You cannot tell the quality of a decision from the outcome
  • Improbable things happen all the time, and probable things fail to happen all the time
• Here’s why market cycles occur:
  • “Cycles happen because people commit excesses to the upside, usually out of enthusiasm, which then have to be corrected, and those corrections overshoot to the downside”
• The greatest contributor to global economic maximization? – Globalization
• More likely than not, luck plays a role in everyone’s successes
• Self-driving cars will put a TON of people out of work
• Risk isthe probability of bad outcomes
  • Bad outcomes = loss AND gains that you miss out on
  • Many people care more about the former – we should think of risk in terms of BOTH
• The earlier a child can learn that mistakes don’t kill them, the better

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Billionaire investor, author and co-founder of Oaktree Capital Howard Marks discusses risk assessment, how to think different than the crowd, and the three mighty dares that separate the successful from the also-rans.

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