Billionaire investor Howard Marks (pictured above) speaks alongside Jeffrey Rohde, Pepperdine’s chief investment officer, in Smothers Theatre on Jan. 13. Marks said balancing conservatism with risk-taking is the key to investing. Photos courtesy of Pepperdine University
Pepperdine University hosted renowned investor Howard Marks for an hour-long fireside chat with Jeffrey Rohde, Pepperdine’s chief investment officer, in Smothers Theatre on Jan. 13. The theatre was packed with students, alumni and members of the Pepperdine community who came to hear Marks share his insight on the economy and stock market, followed by an audience Q&A.
Marks is the cofounder and co-chairman of the global investment firm Oaktree Capital Management, which manages over $200 billion in assets and is ranked the 64th largest pension fund in the United States. Marks is worth an estimated $2.2 billion as of 2025, according to Forbes.
“It’s cool having a lot of different perspectives to hear from, especially from someone as big and successful as Howard Marks,” junior Finance major Jessica Tartaryan said. “It’s great to have a look into [his] mind.”
Marks focused largely on the concept of risk, especially the difference between risk and volatility. Marks defined risk as the probability of an undesirable outcome, whereas volatility is the range of possibilities. Even though volatility can sometimes be used as a proxy for risk, Marks said it’s an inaccurate measure because volatility does not necessarily equate to risk.
Marks said he would rather invest in a highly volatile stock with a 15% average rate of return than a steady stock with a 12% return.
“I would rather have a lumpy 15 than a smooth 12,” Marks said, quoting billionaire Warren Buffett. “If you can survive long enough to enjoy the long-term benefit of the lumpy 15, it beats the hell out of the smooth 12.”
Although Marks is a more cautious investor, he said he wouldn’t have achieved his success without taking risks.
For instance, Marks pointed to the 2008 financial crisis, in which Oaktree Capital Management took advantage of the stock market crash and invested around $650 million per week for 15 weeks across various distressed opportunities. Though the potential for loss was high, they rode out the risk and ultimately earned a positive return in the long run.
Audience members listen to Howard Marks speak. Members of the Pepperdine community filled Smothers Theatre to hear Marks’ insights.
Another focal point of the conversation was interest rates, particularly the recent decline in interest rates. Marks described interest rates as the “oxygen” of the business community, as they are extremely influential in market behavior, value and the overall status of the economy.
“Rates up, price down, that’s the way it works,” Marks said. “And it works in all of the investment world because whatever the potential return is on an investment, it looks better when interest rates are lower.”
During the audience Q&A, when asked about his thoughts regarding gold and bitcoin, Marks said there are two kinds of assets: those that produce cash flow and those that don’t. The price of gold and bitcoin is based on perceived value, meaning they can essentially never truly be fairly priced.
“You can’t say what the right price for a barrel of oil is, or a bar of gold,” Marks said. “How do you turn all those qualitative elements into a fair price? And the answer is: there is no way.”
Marks also briefly touched on his values and morals, which have played a large role in his career and success. Marks said it’s important to not only act and work for yourself, but for the well-being of others.
“If you’re not for others, what are you?” Marks said. “If you’re not for yourself, who will be, if not now? We all have a responsibility to balance these things.”
Several students said that the event was incredibly valuable beyond just finance and economics.
“Even though I’m not an Economics major or have an interest in finance, being able to listen to different perspectives and even apply them to my own major makes it valuable,” junior Jillian George said.
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Contact Nicolette Aramian via email: nicolette.aramian@pepperdine.edu