Howard Marks Reveals He Leveraged Perplexity AI to Craft His Latest Memo

Howard Marks, co-founder of Oaktree Capital Management, is known for his insightful financial memos, which even Warren Buffett admires. In his latest memo, “More on Repealing the Laws of Economics,” Marks utilized AI-powered assistant Perplexity to help draft the content, stating he didn’t change its output. Marks argued for free-market economics, illustrating the negative impact of regulations on California’s fire insurance market, which led to widespread underinsurance. He emphasized the absurdity of regulatory constraints preventing insurers from setting appropriate prices based on risk. While advocating for AI’s potential to enhance productivity, Marks also expressed concern over its implications for job markets and skill development. He incorporated insights from Buffett regarding the unsustainable U.S. fiscal deficit and included his own vivid commentary on Washington’s financial practices. Marks exemplifies a balance between embracing innovation while valuing traditional wisdom, as evident in his evolving views on cryptocurrency and AI.

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