Chairman and co-founder of Los Angeles-based investment firm Oaktree Capital likes China because it is ‘uninvestable’, and he is over the moon about our super system.
When asked about the state of global markets, he starts with a well-known quote from a friend: “Remember what Warren Buffett said: ‘It’s only when the tide goes out we find out who’s swimming naked.’
“In a world not driven by economics, who knows whether stock A should be trading at $100 or $50 and, more importantly, how much intellectual energy investors are prepared to spend on such decisions and how much second guessing they are willing to accept.”“First, I have made a career of investing in things that were described as uninvestable, starting with B-rated bonds in 1978, and distressed debt in 1988, and emerging market equities in 1990,” he says.“All of which were on the no-fly list.
“People call it uninvestable. There’s no doubt about that, but let me make it clear: you don’t buy anything on an uninvestable pile just because it’s there. But this is where you look. The things everybody loves will never be cheap. It’s an oxymoron to say I found a bargain among the pile of things everybody loves.
“I think it’s one of the wonders of the world – the fact that you have the institutions, and that it is mandatory,” he says.This prompts Marks to recall a memo he wrote in August 2008 about the decline in financial security of the typical American worker. “We have a lot of good clientele in Chile, and in my opinion Chile has been the greatest economy structure in Latin America – and that’s partly because it was established by a bunch of University of Chicago economists in the mid-20th century,” he says.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Qantas chairman Richard Goyder hits out at Labor’s IR billQantas chairman Richard Goyder raised concerns about the government’s proposed industrial relations changes at the group’s annual general meeting and defended its approach to employee negotiations.
Read more »
Qantas chairman says IR changes create ‘centralised wage setting’Qantas chairman Richard Goyder has called on the Labor government to delay its overhaul of industrial relations laws, arguing that plans for multi-employer bargaining provisions could hurt productivity.
Read more »
China puts 600,000 people under COVID-19 lockdown near world's largest iPhone factoryThe move comes after images emerged on Chinese social media last week showing people breaking out of the facility, with employees reportedly fleeing on foot to avoid COVID-19 transport curbs.
Read more »
How a mysterious China screenshot sparked a $696 billion sharemarket rallyNobody is quite sure who wrote it, when it was written or if it’s even true. But a screenshot of four paragraphs detailing a China reopening plan was enough for traders to scoop up stocks for two days running.
Read more »
Western infrastructure must ‘compete with China’Perth USAsia Centre’s Hayley Channer says we must “demonstrate the value” of our infrastructure offerings to developing nations in order to “compete with China” amid Beijing's growing influence in the Indo-Pacific region. “China is able to build almost anything, anywhere, for anyone,” Ms Channer told Sky News Australia. “The US has a lot of restrictions in terms of what it will actually build, and who it will build it for. “We need to start building things more quickly.”
Read more »