| Howard Marks is co-founder and co-chairman of Oaktree Capital Management, the world’s largest investor in distressed securities. He recently met with the CIBC investment team in Toronto to discuss the six tenets of his investing philosophy - Control risk
“If investors avoid the losers, the winners will take care of themselves. The skillful investor is able to pick up incremental return without the proportional incremental risk.” - Be consistent
“I don’t think it’s important to beat the market every year. It’s good enough to be average in the good years, but it’s essential to be above average in the bad years.” - Be active in less efficient markets
“I believe the market accurately reflects not the truth, but it accurately and efficiently reflects everyone’s opinion of what’s true. Prices tend to converge with the perception of value.” - The benefits of specialization
“Practice a single investment specialty—and do it absolutely as well as it can be done.” - Macro-forecasting not critical to investing
“I don’t know if the markets are going to go up or down in the next six months.” - Take a long-term approach
“It’s simple but not easy: Sell when it’s overvalued, get back in when it’s undervalued—nobody can [consistently] do it.” Watch some of the highlights from Howard’s presentation. To discuss these ideas in greater detail, contact me today. | 
