| Dear Friend, We now have 48 speakers confirmed for the SIC 2021... and I’m very happy that among the recent additions is Howard Marks, who was one of the audience favorites in 2019. (To experience Howard and our other high-profile speakers live at the virtual SIC 2021, get your discounted Pass here.) As you probably know, Howard Marks is the co-chairman of Oaktree Capital and one of the living legends in our business. I just read one of his recent memos to his high-net-worth clients; in it, he talks about what he learned from his ten-month-long discussions on growth vs. value investing with his son Andrew (also a professional investor). What I love about this is how Howard—a self-made billionaire and larger-than-life investing icon—is still willing to listen to other ideas and opinions, and adapt his own views if he finds them compelling. This, in my book, constitutes true greatness. The memo is way too long to post here in its entirety, but here are Howard’s main conclusions: Value investing doesn’t have to be about low valuation metrics. Value can be found in many forms. The fact that a company grows rapidly, relies on intangibles such as technology for its success, and/or has a high P/E ratio shouldn’t mean it can’t be invested in on the basis of intrinsic value. Many sources of potential value can’t be reduced to a number. As Albert Einstein purportedly said, “Not everything that counts can be counted, and not everything that can be counted counts.” The fact that something can’t be predicted with precision doesn’t mean it isn’t real. Since quantitative information regarding the present is so readily available, success in the highly competitive field of investing is more likely to be the result of superior judgments about qualitative factors and future events. The fact that a company is expected to grow rapidly doesn’t mean it’s unpredictable, and the fact that another has a history of steady growth doesn’t mean it can’t run into trouble. The fact that a security carries high valuation metrics doesn’t mean it’s overpriced, and the fact that another has low valuation metrics doesn’t mean it’s a bargain. Not all companies that are expected to grow rapidly will do so. But it’s very hard to fully appreciate and fully value the ones that will. If you find a company with the proverbial license to print money, don’t start selling its shares simply because they’ve shown some appreciation. You won’t find many such winners in your lifetime, and you should get the most out of those you do find. I’m looking forward to finding out how he arrived at some of these conclusions. I have no doubt it will be a memorable presentation. I urge you not to miss this year’s SIC—it is slated to break all the records. Click here to see all our blue-ribbon speakers and panelists, and to get a glimpse of some of the topics we will discuss. This is also the place to order your discounted SIC 2021 Pass. Your eagerly awaiting opening day analyst, John Mauldin
Co-founder, Mauldin Economics P.S. Even if you don’t have the time to watch all of the presentations, panels, and fireside chats live as they happen, you won’t miss a thing. Your SIC 2021 Pass includes video and audio recordings, transcripts, and presenters’ slides (as available), so order today and save 50%. |
