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I Beg to Differ

oaktreecapital.com · 6,991 words · saved by 1 readers

I’ve written many times about having joined the investment industry in 1969, when the “Nifty Fifty” stocks were in full flower. My first employer, First National City Bank, as well as many of the other “money-center banks” (the leading investment managers of the day), were enthralled with these companies, with their powerful business models and flawless prospects. Sentiment surrounding their stocks was uniformly positive, and portfolio managers found great safety in numbers. For example, a common refrain at the time was “you can’t be fired for buying IBM,” the era’s quintessential growth company. I’ve also written extensively about the fate of these stocks. In 1973-74, the OPEC oil embargo and the resultant recession took the S&P 500 Index down a total of 47%. And many of the Nifty Fifty, for which it had been thought that “no price was too high,” did far worse, falling from peak p/e ratios of 60-90 to trough multiples in the single digits. Thus, their devotees lost almost all of

I Beg to Differ Opens in a new window Opens an external site Opens an external site in a new window PDF Translations Japanese Korean Simplified Chinese Traditional Chinese Memos from Howard Marks 2022-07-26T07:00:00.0000000Z" pubdate title="Time posted: >7/26/2022 7:00:00 AM (UTC)">Jul 26, 2022 PDF (English) PDF (Translations) Listen to Memo Archived Memos Subscribe I Beg to Differ I've written many times about having joined the investment industry in 1969, when the "Nifty Fifty" stocks were in full flower. My first employer, First National City Bank, as well as many of the other "money-center

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