Howard Marks: How Writing Helped Him Raise Billions
- Podcast: How to Write Good
- Host: David Perell
- Guest: Howard Marks — co-founder of Oaktree Capital Management, author of The Most Important Thing
- Duration: 53 minutes
- Listen: Apple Podcasts | YouTube
Howard Marks started writing investment memos for about 100 clients in 1990. Today, 300,000 people subscribe to them, and he manages over $190 billion at Oaktree Capital. This conversation covers how he writes, why he writes, and what he has learned about clarity over 35 years.
The Goal
Marks’ writing goal: to hear a reader say “I never thought of it that way.” He wants to challenge existing beliefs, not confirm them.
Simplicity as the Highest Intelligence
Marks quotes Einstein: there are four levels of intelligence — bright, brilliant, genius, and simple. The highest is simple.
He contrasts his approach with most of the financial industry, which uses jargon to create barriers. Marks uses contractions, common language, and accessible phrasing. He writes like he speaks.
He also quotes Oliver Wendell Holmes: “For the simplicity on this side of complexity, I wouldn’t give you a fig. For the simplicity on the far side of complexity, I’d give you the entire world.”
The Process
Marks does not write on a schedule. He collects ideas on scraps of paper over time and waits for inspiration. When he has enough, he organizes the thoughts and writes a first draft. Then he edits extensively through multiple rounds. He has a trusted group of “irregulars” who give feedback — some for substance, some for grammar.
The Memo as a Differentiator
Why give away insights for free? Marks says telling people what is important does not mean they can implement it. The implementation gap protects his edge. He writes because he enjoys the creative process and it builds relationships.
Writing from Principles
Marks does not comment on daily market events. He writes from a principle-based perspective. That is why his memos from 1990 are still worth reading.
The Origin Story
Marks credits a demanding Japanese literature professor at Wharton, E. Dale Saunders, who transformed him from an indifferent student into a serious writer through meticulous feedback. That, plus his combined education at Wharton (qualitative) and the University of Chicago (quantitative), gave him a unique lens.
Advice for Young Writers
“Don’t waste your time until you have something to say.” Wait until you have genuine wisdom to impart.
Crepi il lupo! 🐺