Howard Marks is the Co-Founder and Co-Chairman of Oaktree Capital Management which have $99 Billion Assets Under Management (AUM) as at 2017. Oaktree Capital is the largest distressed investor in the world meaning that they invest mostly on company that is near or currently going through bankrupcy. If you think investing in Bursa is risky imagine investing in these distressed companies. 

If you look at Oaktree Capital's Historical Assests Under Management you will see that there's a big jump from $30 Billion in 2005 to $83Billion in 2010 a 170% in 5 years and the notice that the amount is in Billions. Oaktree Capital had been investing aggressively in 2008 where everybody else in the world believe that it is the end of the world. As Warren Buffet says "Be fearful when others are greedy and greedy when others are fearful".There is no other person in my opinion who's more qualified to talk about risk other than Howard Marks. 

We are very very blessed to be living in the internet age because Howard Marks has been writing memos on his thoughts regarding the investment world since 1990 and the best part is it is available for everyone to read at (www.oaktreecapital.com/insights/howard-marks-memos) and his book The Most Important Thing, Uncommon Sense for the Thoughtful Investor is freely available on the internet just type The Most Important Thing.pdf and you can dowload,save it in your phone and read it on the go. Today i would like to share my reading with all of you on chapter 7 of the book - Controlling Risk

I find Figure 7.1 and Figure 7.2 is very powerful if you can understand and fully grasp its meaning. The Benchmark can be anything you want to compare your portfolio to. It can be the KLSE, Mutual Funds portfolio, your friend's portfolio,your neighbour's portfolio even  sifu OTB or uncle KYY in you wish to benchmark your portfolio againts theirs.

I hope you, the reader benefit from my sharing today