Howard Marks: How Writing Helped Him Raise Billions | How I Write Podcast
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Deep Dive
What is Howard Marks' approach to writing and why does he emphasize simplicity?
Howard Marks emphasizes simplicity in writing because he believes that clear, accessible communication is key to making complex ideas understandable. He aims to write the way he speaks, using common language and avoiding jargon to ensure his writing is relatable and engaging. His goal is to break down barriers between himself and his readers, making sophisticated concepts accessible to a broader audience.
How did Howard Marks' writing memos evolve from having 100 readers to over 300,000 subscribers?
Howard Marks started writing memos in 1990, initially sending them to about 100 clients via physical mail. Over time, as his firm Oak Tree Capital grew and the internet became more prevalent, his memos were distributed electronically, reaching a wider audience. By the late 1990s, his memos began to go viral, with one reaching someone in Russia within hours of publication. Today, he has over 300,000 subscribers who value his insights on investing and risk management.
What is the significance of Howard Marks' phrase 'I never thought of it that way' in his writing?
Howard Marks considers the phrase 'I never thought of it that way' as the highest compliment because it signifies that he has introduced a new perspective or challenged a reader's existing beliefs. He believes that writing should not merely confirm what people already know but should provoke thought and offer fresh insights, which is why he strives to present ideas in a way that encourages readers to question their assumptions.
What are Howard Marks' four tenets for high-quality writing?
Howard Marks' four tenets for high-quality writing are clarity, humor, interesting topics, and challenging the reader. He believes that writing should be clear and accessible, incorporate humor to engage the audience, focus on topics that are inherently interesting, and challenge readers to think differently or learn something new.
Why does Howard Marks believe that writing is a valuable creative outlet?
Howard Marks views writing as a valuable creative outlet because it allows him to express his ideas, organize his thoughts, and share his insights with others. He finds the process of writing and editing to be relaxing and rewarding, and he enjoys the intellectual challenge of distilling complex concepts into simple, clear language. Writing also serves as a way for him to reflect on his experiences and contribute to the broader conversation on investing and risk management.
How does Howard Marks reconcile qualitative and quantitative approaches in his writing?
Howard Marks reconciles qualitative and quantitative approaches by drawing on his education at Wharton (qualitative) and the University of Chicago (quantitative). He uses his intellectual curiosity to explore the tension between these two perspectives, often finding that the most interesting insights come from reconciling seemingly opposing ideas. This approach allows him to present nuanced, well-rounded views on investing and risk management.
What role does randomness play in Howard Marks' philosophy on writing and investing?
Howard Marks acknowledges the role of randomness in both writing and investing, emphasizing that many outcomes are beyond one's control. However, he believes that the quality of one's output is within their control. By focusing on producing high-quality work, whether in writing or investing, individuals can maximize their chances of success despite the unpredictability of external factors.
What is Howard Marks' advice for young professionals who want to start writing memos or annual letters?
Howard Marks advises young professionals to focus on developing a clear point of view and investment philosophy before attempting to write memos or annual letters. He emphasizes the importance of having something meaningful to say, which often comes with experience. He also recommends writing about lasting principles and significant lessons rather than fleeting events, as this creates a more substantial and valuable output.
How does Howard Marks use analogies in his writing to explain complex concepts?
Howard Marks uses analogies to make abstract or complex concepts more vivid and relatable. For example, he compares the economy to a ball held aloft by a water spout, representing the temporary nature of stimulative policies. By using visual and graphic analogies, he helps readers understand and retain key ideas more effectively.
What does Howard Marks admire about Warren Buffett's writing style?
Howard Marks admires Warren Buffett's ability to convey sophisticated ideas with clarity, humor, and memorable phrases. He particularly appreciates Buffett's use of vivid imagery, such as the analogy 'It's only when the tide goes out that we find out who's been swimming naked,' which succinctly captures the idea of risk exposure during downturns. Marks strives to emulate Buffett's accessible and engaging writing style in his own work.
- Focus on high-quality output.
- Connect seemingly unrelated ideas.
- Embrace serendipity in the creative process.
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