8 Life-Changing Books Recommended by Howard Marks

Howard Marks, co-founder of Oaktree Capital, is renowned for his deep insights into risk, cycles, and rational investing. His recommended books reflect his disciplined philosophy, emphasizing human behaviour and probability over hype. These titles explore decision-making, chance, and managing uncertainty, helping Marks become a clearer thinker and grounded investor. Whether in finance or not, these ideas sharpen thinking and action in unpredictable situations. 1. Principles by Ray Dalio Dalio's 'Principles' offers a structured approach to life and work, grounded in transparency and feedback. It provides practical tools for decision-making and leadership, aligning with Marks' long-term outlook. The book emphasizes learning from mistakes and using data over emotion, offering clarity and structure amid uncertainty. 2. Fooled by Randomness by Nassim Nicholas Taleb Taleb’s book examines how people mistake luck for skill, especially in random markets. It challenges overconfidence, reframing success as circumstantial. The book is as much about psychology as statistics, providing armour against hubris and complacency. 3. The Psychology of Money by Morgan Housel Housel’s bestseller highlights that managing money is more about behaviour than logic. It explains how emotions derail decisions and emphasizes time, patience, and context. The book offers perspective, helping readers understand that financial success ties to consistency and calm. 4. Factfulness by Hans Rosling Rosling’s book is a data-driven antidote to panic, dismantling myths about global progress. It emphasizes fact-based thinking, urging readers to avoid fear-driven decisions. The book is perfect for decision-makers seeking clarity in a noisy world. 5. Against the Gods by Peter L. Bernstein Bernstein traces the evolution of risk understanding, blending history, philosophy, and probability. Marks finds it essential for grasping risk's role in civilisation. The book offers a framework for evaluating uncertainty and making informed decisions. 6. The Warren Buffett Way by Robert G. Hagstrom Hagstrom’s profile of Buffett provides insight into a disciplined worldview, emphasizing patience and value. The book details Buffett’s commitment to simplicity and avoiding complexity, aligning with Marks’ philosophy. It champions discipline over drama, helping investors build resilience. 7. A Short History of Financial Euphoria by John Kenneth Galbraith Galbraith explains how market manias form and crash, highlighting themes like arrogance and denial. The book warns that no era is immune to folly, cultivating scepticism and emotional discipline. 8. Bringing Down the House by Ben Mezrich This thriller-like account of MIT students counting cards in Vegas offers lessons in math, risk, and psychology. It shows how strategy can beat systems but also how overconfidence can undo success. The book makes complex ideas thrilling and human, offering insights into judgment and behaviour. Howard Marks’ recommended reading focuses on mindset, helping develop clearer thinking, scepticism, and emotional steadiness. These books map decision-making terrain, building a mental toolkit for success in investments and life.