#1
Assess Management Quality
"Good management can overcome a mediocre business situation, and bad management can ruin a great business. Judging management is critical."
Management quality can make or break an investment.
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Howard Marks📌 Business Judgment
Howard Marks's Business Judgment Rules
Howard Stanley Marks (born April 23, 1946) is an American investor and writer. He is the co-founder and co-chairman of Oaktree Capital Management, one of the world's largest investors in distressed securities with over $150 billion in assets under management. Marks is renowned for his insightful memos to clients, which have been published since 1990 and are widely read in...
3 principles·Business Judgment
3 Key Business Judgment Principles
#2
Business Moat Assessment
"Understanding whether a business has a sustainable competitive advantage is fundamental to judging its long-term prospects."
Identify sustainable competitive advantages.
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Industry Dynamics
"Understanding the dynamics of the industry is as important as understanding the company. Some industries are simply more investable than others."
Industry dynamics shape investment outcomes.
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What are Howard Marks's key business judgment principles?
Howard Marks has 3 key principles on business judgment. The most important one is "Assess Management Quality" — Good management can overcome a mediocre business situation, and bad management can ruin a great business.
How does Howard Marks apply business judgment in practice?
Howard Marks applies business judgment through several key principles including "Assess Management Quality" and "Business Moat Assessment". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Howard Marks's approach to business judgment unique?
Howard Marks's approach to business judgment is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Howard Marks provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
