Aswath Damodaran: Globalization Backlash
April 1, 2025
In his recent article, NYU professor Aswath Damodaran shares his thoughts on how politics, globalization, and disruption has changed the investing landscape.
Howard Marks: Reassess your bond and equity weighting
-
By Borsgade
- - Published
Howard Marks, Oaktree Capital Management Co-Chairman, recently attended the HKMA Global Financial Leaders’ Investment Summit, where he discussed the balance between investing in credit and equities with Bloomberg’s David Ingles.
For an individual investor, this means investing in government, mortgage and corporate bonds on the one hand and listed companies on the other. In this split, Marks today sees completely different opportunities to get a return on par with the equity market, i.e. 8-10% per year. Even with a large allocation towards bonds:
Right now, it looks like you can get equity type returns from credit. A little below ten for what we call liquid credit, stuff that’s tradable every day, and well above ten perhaps for private credit, which is not tradable. […]
So the question is, how do you and your organization feel about that trade off? If I say to you I think I can get you 9 to 10% through a balanced portfolio of credit, over the long term quite dependably. If you say that’s great, I love that, maybe you do 75% of your portfolio.
If you say I want to still make sure that I have exposure to the upside of equities, then you say maybe 50 or 40.
Share the news
Disclaimer of liability
The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.
Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk
You might also find this interesting:
Bill Nygren: A Modern Approach To Value Investing
March 28, 2025
In this interview, Bill Nygren reflects on his career mistakes and lessons learned. These insights highlight the importance of balancing conviction with caution in investing and the need for value investors to adapt their strategies to include companies with significant intangible assets.
Howard Marks: Value matters more than quality
March 28, 2025
In this interview, Howard Marks shares his investment philosophy and lessons learned over his 55-year career, including contrarian investing, value versus quality and the inevitable market cycles.
Mohnish Pabrai: The Boom-Bust Mental Model
March 28, 2025
In this interview at the 2025 MOI Global, Mohnish Pabrai shares insights on his investment philosophy and current market perspectives. The conversation covers various industries and investment approaches, with particular focus on cyclical businesses and special situations.