Howard Marks: Talks at Google

Warren Buffett said, "When I see memos from Howard Marks in my mail, they're the first thing I open and read." Howard is the co-chairman of Oaktree Capital Management. He is known in the investment community for his "Oaktree memos" to clients which detail investment strategies and insight into the economy. He treats investing as equal parts psychology and finance, and his book The Most Important Thing provides "uncommon sense for the thoughtful investor." (Originally uploaded by Google on March 29, 2015) Legal Information and Disclosures: This communication expresses the views and opinions of the participants as of the date it was recorded and such views and opinions are subject to change without notice. Oaktree Capital Management, L.P. (“Oaktree”) has no duty or obligation to update the information contained herein. This communication may include forward-looking statements that are based on then-current beliefs of the participants. Such forward-looking statements may involve assumptions and known or unknown risks and uncertainties that are subject to change and may differ from actual results, performance or events that occur in the future. Forward-looking statements speak only as of the date the statements are made. Further, Oaktree makes no representation, and it should not be assumed, that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss. This communication is being made available for educational purposes only and should not be used for any other purpose. This communication and the information contained herein do not constitute and should not be construed as an offering of advisory services or an offer to sell or solicitation to buy any securities or related financial instruments in any jurisdiction. Further this communication does not constitute and should not be construed as a recommendation or testimonial for any securities, related financial instruments, products or services. Investing in the bond market is subject to many risks including market, interest rate, issuer, credit, inflation and liquidity risk. Further, securities in the lower rating categories are subject to greater risk of loss of principal and interest than higher-rated securities especially in the case of a deterioration of general economic conditions. Because investors generally perceive that there are greater risks associated with the lower-rated securities, the yields and prices of such securities may be more volatile than those for higher-rated securities. The market for lower-rated securities is thinner, often less liquid, and less active than that for higher-rated securities, which can adversely affect the prices at which these securities can be sold and may even make it impractical to sell such securities. Moreover, the prices of lower-rated securities have been found to be less sensitive to changes in prevailing interest rates than higher-rated investments. If the issuer of a fixed-income security defaults, the holder may incur additional expenses to seek recovery and the possibility of any recovery can be subject to the expense and uncertainty of insolvency proceedings. Investing in the debt of issuers undergoing financial distress (such as companies that may be in bankruptcy or that could require substantial workout negotiations or restructuring in the event of a default or bankruptcy) entail significant risks, time commitments and costs. Companies undergoing distress may also have capital structures with significant leverage, which makes such companies inherently more sensitive than others to declines in revenues and to increases in expenses and interest rates. Investments in securities or obligations of non-U.S. entities involve certain special risks, including social, political or economic instability; the possibility of unfavorable foreign governmental actions; price fluctuations and market volatility; differences in auditing and financial reporting; adverse taxes; and different laws and customs. These factors may increase the likelihood of potential losses being incurred in connection with such investments. Additionally, because such investments are likely to be denominated in currencies other than U.S. dollars, the fluctuation in currency exchange rates may have an adverse impact on performance. This communication, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part, in any form without the prior written consent of Oaktree.