The Power of Clear Communication in a Complex World
In today’s world where jargon and complexity often cloud the message, clarity and simplicity stand out as rare and invaluable skills.
Few embody these qualities better than Howard Marks, co-founder of Oaktree Capital Management.
For over three decades, Marks has distilled complex financial concepts into clear, engaging writing that resonates with over 300,000 readers.
With over $190 billion in assets under management, his ability to communicate effectively is not just a reflection of his intellect but a key factor in his success.
In a recent episode of How I Write, Marks shared his writing process, revealing how he turns sophisticated ideas into easily digestible content and how to become a better writer.
Let’s explore his approach to writing, simplicity, and how he connects with readers through thoughtful, impactful communication.
Simplicity: A Path to Clarity
One of the most remarkable aspects of Marks’ writing is its simplicity.
Readers often praise him for making complicated concepts easy to understand.
This ability to distill complexity is a result of his logical thinking and methodical approach. Marks recounts a particularly flattering compliment:
“You make complex things simple.”
In fact, one reader even compared his work to Einstein’s idea that true genius lies in simplicity.
Marks proudly reflects on this:
“Einstein said there are four levels of intelligence: bright, brilliant, genius, and simple. The inference is that my writing is simple, and that makes me very happy.”
He attributes his skill to his left-brain-dominant thinking, which allows him to break down ideas in an organized, logical manner.
This methodical approach ensures that the message is accessible to readers without diluting its depth or meaning.
Key points on why simplicity works in writing:
- Clarity resonates: Clear ideas are easier for readers to absorb and act upon.
- Engagement increases: Simplicity invites more interaction and feedback.
- Efficiency matters: In a world of information overload, concise communication is a breath of fresh air.
The Writing Process: Output Without Pressure
Unlike many writers, Marks doesn’t impose a strict writing schedule on himself.
He writes when inspiration strikes, ensuring that his content remains fresh and thoughtful. As he puts it:
“I write when I feel like it. I try to write no less than quarterly, but I don’t require any regularity of myself.”
This relaxed approach keeps the pressure off and allows him to produce high-quality work whenever he has something valuable to share.
Typically, Marks gathers ideas over time and waits until he has a critical mass of thoughts before writing.
His process includes:
- Reading and collecting: He reads widely and saves articles or ideas that spark his interest.
- Connecting ideas: Marks makes connections between seemingly unrelated topics, which eventually form the basis for his memos.
- Writing from a “pile of scraps”: Once he has enough material, he organizes his notes and begins writing.
A notable example of this approach is his Getting Lucky memo, which was triggered by an article on luck that quoted Jack Dorsey:
“Success is never accidental. You make your own luck.”
Marks disagreed with Dorsey’s take, leading him to write the memo about the role of randomness and luck in life and investing.
Distillation of Ideas: From Concept to Polished Memo
Marks excels at distilling complex ideas into their most essential components.
He doesn’t start with a detailed outline but rather begins with “a pile of scraps of paper,” thoughts, and clippings.
Once he’s mulled over these ideas and organized them in his mind, he sits down to write.
Marks explains:
“Usually what happens is I think about it for a long time. And then, having thought about it and come to some ideas about organization, I just write them down.”
This process is followed by extensive editing, which he genuinely enjoys.
Marks describes it as “polishing” ,refining the draft multiple times until it shines.
Editing involves:
- Reorganizing paragraphs to improve flow.
- Making connectors between sentences for better coherence.
- Polishing over multiple drafts, improving each time until the piece is as good as possible.
Marks also seeks feedback from a group of trusted readers, whom he humorously refers to as his “irregulars.” They help him catch errors and fine-tune his writing before it goes public.
Giving Away Secrets: Why Transparency Wins
A common question many ask is why someone as successful as Marks would openly share his investment insights. Wouldn’t that diminish his competitive edge? Marks explains his reasoning behind sharing:
“I can tell people what’s important, but most of them are still not going to be able to do it.”
He believes that while understanding a concept is one thing, implementing it effectively is far more challenging.
For him, the benefits of sharing his thoughts outweigh the risks, as many will not have the discipline or expertise to apply his ideas fully.
Marks adds that writing is personally satisfying. It’s something he enjoys doing for its own sake:
“Writing is one of the things I like to do the most, and I find it relaxing… I believe that it’s desirable to have a creative outlet that’s mine.”
This transparency has helped Marks build trust and credibility with his audience.
He has found that openly sharing his thoughts doesn’t diminish his success; it enhances it by solidifying his role as a thought leader in the industry.
Writing Like You Speak: Avoiding Industry Jargon
One of the hallmarks of Marks’ writing is its conversational tone. He aims to write the way he speaks, using contractions and everyday language to make his content accessible.
He is critical of the financial industry’s tendency to use jargon as a barrier between professionals and laypeople:
“A lot of professions have a jargon… some insecure professionals want to stay with that jargon to reinforce the barrier between themselves and the common man.”
Marks strives to break down that barrier by telling stories that are both engaging and understandable.
He avoids the trap of trying to sound overly intellectual or complicated. His goal is always to connect with his readers on a personal level:
“My goal is to say, ‘I’m a person. You’re a person. We’re both people. I know about some stuff you don’t know about, but I’d like to share it with you.’”
In an industry where jargon can alienate readers, Marks’ straightforward style is a breath of fresh air.
It’s a key reason why his memos have such a broad appeal.
The Value of Clarity and Simplicity
Howard Marks’ writing journey offers invaluable lessons on the power of clarity and simplicity.
His ability to distill complex ideas into understandable narratives has earned him a reputation as one of the most influential voices in finance.
By writing only when he feels inspired, focusing on clear communication, and editing his work meticulously, Marks has maintained a high standard of quality in everything he publishes.
Key takeaways for effective writing:
- Write the way you speak: Avoid jargon and keep your tone conversational.
- Simplicity resonates: The simpler the message, the more impactful it will be.
- Editing is essential: Refining your draft through multiple revisions improves both clarity and impact.
- Trust the process: Writing doesn’t always require strict schedules — let ideas develop organically.
In a world where complexity often dominates, Marks’ commitment to simplicity serves as a refreshing reminder that the best ideas are often the ones communicated most clearly.
Whether you’re writing a memo, a blog post, or a business proposal, the principles Marks follows — clarity, transparency, and a focus on making ideas accessible — can help you create content that resonates with your audience.
Final Thoughts
Marks’ approach to writing is not only relevant to the world of finance but to anyone looking to improve their communication skills.
His emphasis on writing the way you speak, avoiding unnecessary jargon, and focusing on clear, concise ideas is something that can benefit writers in any field.
As Marks himself demonstrates, simplicity is not just a tool for clarity — it’s a key to lasting impact.
