Not many folks will be familiar with Mr Marks. but here is what Warren Buffett say about him:

"When I see memos from Howard Marks in my mail, they’re the first thing I open and read. I always learn something, and that goes double for his book."

In his book, The Most Important Thing (next in my reading list after The Outsiders) he makes this reference how to evaluate what to buy in a distress situation:

"I need 8 percent. I’d be glad to earn 10 percent instead. Twelve percent would be even better. But I won’t try for more than that, because doing so would entail risks I’m just not willing to bear. I don’t need 20 percent."

Can readers tell me what does he mean by this?