Howard Marks on inflation, why he is BULLISH on China and why he might have been wrong about Bitcoin

In William Green (author of Richer, Wiser, Happier) latest podcast, Howard Marks talked about how to invest successfully in an inflationary environment, why he is BULLISH on China and why he might have been wrong about Bitcoin.

Here are my notes:

1. Comparing today's inflationary environment with the 1970s.

Howard believes today's inflation is temporary and it is largely due:

• Supply chain interruption

• Bulge in demand from COVID relief measures

• The private sector was heavily unionized back then.

2. How will he invest in this inflationary environment?

• For FI investors, have more floating rate instruments & less fixed rate instruments.

• Healthy real estate can pass on rent increases.

• Invest in companies where profits grow faster than inflation.

3. Crypto

He had a very negative perception as there's no substance, it doesn't produce cash flow and it can't be valued.

His son Andrew argued that:

4. On China

His ears perk up when people say, "China is not investible."

"Uninvestible" introduces the possibility that it is cheap.

Many people are afraid of China being aggressive geopolitically, but the risks are low.

If you are looking to invest in China, check out my Alibaba deep-dive here.

And that's a wrap!

If you want more of Howard Marks, check out my post here: 10 Lessons From Howard Marks of Oaktree Capital

And if you want to listen to the podcast, check it out here!

Till next time,

Thomas Chua