In one of his famous “memos” released on Nov. 22, Howard Marks (Trades, Portfolio), co-chairman of multibillion-dollar asset management firm Oaktree Capital, discussed “what really matters or should matter for investors.”
The paper, titled “What Really Matters?” began with the investor examining several things that he does not think matter. Some of these topics included short-term events, the trading mentality and short-term performance.
The guru then went on to share what really does matter. He wrote:
“What really matters is the performance of your holdings over the next five or 10 years (or more) and how the value at the end of the period compares to the amount you invested and to your needs. Some people say the long run is a series of short runs, and if you get those right, you’ll enjoy success in the long run. They might think the route to success consists of trading often in order to capitalize on relative value assessments, predictions regarding swings in popularity, and forecasts of macro events. I obviously do not.”
Marks then offered some suggestions and emphasized key elements to remember regarding performance.
Read his full memo here.
