Howard Marks

If it goes down, they say, I better sell some before it goes down more and I'll feel like a jerk.

In other words- And that has nothing to do with the business.

Right.

Or the thing you're selling.

And a huge amount of people's preoccupation, in my opinion, is with avoiding regret.

Embarrassment in front of others, regret themselves.

You know, it all comes down to maybe we can think better about the selling decision if we rebrand it and we call it the decision to unbuy.

The thought process should be the opposite of the buying decision.

and not some chicken stuff about being afraid to lose.

But I think Andrew points out a very important thing that in the olden days, you look at the classic value investments, and I did some of this, you get this chance to buy the dollars for 50 cents.

And that's a great thing.

But once it hits a dollar, you got to sell it.

You got to find another dollar for 50 cents.

The concept of you buy it a dollar for 50 cents and then it goes on to be worth two and four and eight and 16.

Cigar bets don't go to eight bucks.

Yeah, right.

And remember, I was a credit investor.

And the bond investor generally does not think in terms of getting more than 100 cents on the dollar.

So when the upside is capped or non-existent, then obviously taking profits may be somewhat more responsible.

Well, the memo and all my memos since 1990 are available at oaktreecapital.com slash insights under the heading of Chairman's Memos.