The famed investor gave an interview to Reuters on Wednesday.

Oaktree Capital co-chairman Howard Marks said that failing tech IPOs in 2019 is a sign of investor discipline. The billionaire money manager discussed WeWork’s near-collapse and failed IPO with Reuters this week. WeWork had abandoned its planned Q3 IPO after the company released its S-1.

The company’s mounting financial losses, unfunded liabilities, and questionable corporate governance drove potential investors to the exits. Therefore, Marks suggested that this collective decision was a positive development.

“I think it was a success for the market. This is a positive sign that the market is behaving as it should,” Marks said.

Oaktree Capital on Valuations

Meanwhile, despite lofty valuations and ensuing price declines from IPO levels at Uber and Lyft, Howard Marks believes the markets are stable.

“This is a low return world. Asset prices are high but not absurd,” he said. “Too much money chasing too few deals,” he said. “I don’t think we’re in a bubble. I don’t think the conditions today are extreme or crazy.”

He also went on to say he doesn’t expect a market crash or total meltdown.

Opportunity Ahead

The Reuters interview ended with questions about geopolitical opportunities around the globe. Further, Marks said that China and places in Latin America present potential for some discounted assets. Marks also said that being a contrarian is an important way to make money.

“In my experience, which now spans 50 years, you make big money when you do things that other people don’t want to do,” he also said.