Howard Marks warned investors about FANG stocks’ hype earlier this month: 'Nothing works forever'

  • Oaktree Capital's Howard Marks investor worried about the soaring prices of FANG stocks at the Delivering Alpha Conference on July 18.
  • "Nothing works forever. Things that are most hyped and usually the things that are most loved produce the most disappointment and the most pain," Marks said.

Oaktree Capital's Howard Marks presciently cautioned investors on the risks of high-flying technology growth stocks nearly two weeks ago.

The investor was asked if he was worried about the soaring prices of FANG stocks, referring to the shares of Facebook, Amazon, Netflix and Google parent Alphabet at the Delivering Alpha Conference on July 18.

Howard Marks, Co-Chairman, Oaktree Capital 
David A. Grogan | CNBC
Howard Marks, Co-Chairman, Oaktree Capital 

"Yes. They are great companies. But the ETFs probably have accentuated the flow of capital into those stocks," he said at the conference. "Nothing works forever. Things that are most hyped and usually the things that are most loved produce the most disappointment and the most pain."

Three out of the four FANG stocks have declined since the investor's cautious remarks.

On Thursday Facebook shares dropped 19 percent, a day after it reported lower-than-expected second-quarter sales and daily active user numbers, resulting in the biggest one-day market value loss for a single U.S. stock in history.

And since the market's close on July 17 through Monday, Facebook shares fell 18.5 percent, Amazon dropped 3.5 percent, Netflix declined 11.7 percent, while Alphabet's stock rose 1.4 percent.

Marks is known for his prescient investment memos, which warned about the financial crisis and the dot-com bubble implosion. Oaktree Capital had $122 billion of assets under management as of June. The investor has a net worth of $2 billion, according to Forbes.

The full interview with Marks is available here .

Previous Years

  • CNBC and Institutional Investor hosted the 7th Annual Delivering Alpha Conference on September 12, 2017.

  • Delivering Alpha 2017 stage, signage

    Meet the 2017 advisory board of Delivering Alpha, which takes place on September 12, 2017 at The Pierre in New York City.

  • The stage at Delivering Alpha 2016 in New York on Sept. 13, 2016.

    CNBC and Institutional Investor hosted the 6th Annual Delivering Alpha Conference on September 13, 2016.

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