Seth Klarman Quotes - Page 3

Quotes about:

• Value investors should completely exit a security by the time it reaches full value; owning overvalued securities is the realm of speculators.

  Seth Klarman

  Exit, Should, Realms

  12 Copy quote

• As Buffett has often observed, value investing is not a concept that can be learned and gradually applied over time. It is either absorbed and adopted at once, or it is never truly learned.

  Seth Klarman

  Investing, Buffett, Adopted

  24 Copy quote

• Selling, in particular, can be a challenge; many investors are tempted to become more optimistic when a security is performing well. This temptation must be resisted; tax considerations aside, when a security reaches full valuation, there is no longer a reason to own it.

  Seth Klarman

  Optimistic, Temptation, Challenges

  21 Copy quote

• A commodity doesn't have the same characteristics as a security, characteristics that allow for analysis. Other than a recent sale or appreciation due to inflation, analyzing the current or future worth of a commodity is nearly impossible.

  Seth Klarman

  Appreciation, Analysis, Analyzing

  12 Copy quote

• Do not suffer interim losses, relish and appreciate them

  Seth Klarman

  Loss, Appreciate, Suffering

  6 Copy quote

• Targeting investment returns leads investors to focus on potential upside rather on downside risk ... rather than targeting a desired rate of return, even an eminently reasonable one, investors should target risk.

  Seth Klarman

  Focus, Risk, Target

  8 Copy quote

• Warren Buffett likes to say that the first rule of investing is "Don't lose money," and the second rule is, "Never forget the first rule." I too believe that avoiding loss should be the primary goal of every investor. This does not mean that investors should never incur the risk of any loss at all. Rather "don't lose money" means that over several years an investment portfolio should not be exposed to appreciable loss of principal.

  Seth Klarman

  Believe, Mean, Loss

  12 Copy quote

• When all feels calm and prices surge, the markets may feel safe; but, in fact, they are dangerous because few investors are focusing on risk.

  Seth Klarman

  Risk, May, Safe

  10 Copy quote

• While some might mistakenly consider value investing a mechanical tool for identifying bargains, it is actually a comprehensive investment philosophy that emphasizes the need to perform in-depth fundamental analysis, pursue long-term investment results, limit risk, and resist crowd psychology.

  Seth Klarman

  Philosophy, Intelligent, Long

  24 Copy quote

• It is important to remember that value investing is not a perfect science. It is an, with an ongoing need for judgment, refinement, patience, and reflection. It requires endless curiosity, the relentless pursuit of additional information, the raising of questions, and the search for answers. It necessitates dealing with imperfect information - knowing you will never know everything and that that must not prevent you from acting. It requires a precarious balance between conviction, steadfastness in the face of adversity, and doubt - keeping in mind the possibility that you could be wrong.

  Seth Klarman

  Adversity, Reflection, Knowing

  20 Copy quote

• If an asset has cash flow or the likelihood of cash flow in the near term and is not purely dependment on what a future buyer might pay, then it's an investment. If an asset's value is totally dependent on the amount a future buyer might pay, then its purchase is speculation.

  Seth Klarman

  Cash Flow, Might, Pay

  18 Copy quote

• In a crisis, stocks of financial companies are great investments, because the tide is bound to turn. Massive losses on bad loans and soured investments are irrelevant to value; improving trends and future prospects are what matter, regardless of whether profits will have to be used to cover loan losses and equity shortfalls for years to come.

  Seth Klarman

  Loss, What Matters, Years

  12 Copy quote

• Interestingly, we have beaten the market quite handsomely over this time frame, although beating the market has never been our objective. Rather, we have consistently tried not to lose money and, in doing so, have not only protected on the downside but also outperformed on the upside.

  Seth Klarman

  Insightful, Investing, Protected

  15 Copy quote

• It's awful to have a depression, but it's a great thing to have a depression mentality because it means that we are not speculating, we are not living beyond our means, we don't quit our job to take a big risk because we know we might not get another job. There is something stable about a country, a society built on those values.

  Seth Klarman

  Country, Jobs, Mean

  15 Copy quote

• It is crucial to have a strategy in place before problems hit, precisely because no one can accurately predict the future direction of the stock market or economy. Value investing, the strategy of buying stocks at an appreciable discount from the value of the underlying businesses, is one strategy that provides a road map to successfully navigate not only through good times but also through turmoil.

  Seth Klarman

  Investing, Maps, Buying

  12 Copy quote

• Almost every financial blow up is because of leverage.

  Seth Klarman

  Blow, Financial

  17 Copy quote

• We are not so brazen as to believe that we can perfectly calibrate valuation; determining risk and return for any investment remains an art not an exact science

  Seth Klarman

  Art, Believe, Risk

  11 Copy quote

• Macro worries are like sports talk radio. Everyone has a good opinion which probably means that none of them are good.

  Seth Klarman

  Sports, Mean, Worry

  20 Copy quote

• If only one word is to be used to describe what Baupost does, that word should be: 'Mispricing'. We look for mispricing due to over-reaction.

  Seth Klarman

  Looks, Investing, Doe

  7 Copy quote

• Investors should always keep in mind that the most important metric is not the returns achieved but the returns weighed against the risks incurred. Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.

  Seth Klarman

  Sleep, Night, Risk

  28 Copy quote

• Value investing is predicated on the efficient market hypothesis being wrong.

  Seth Klarman

  Investing, Hypothesis, Efficient

  11 Copy quote

• Unlike return, however, risk is no more quantifiable at the end of an investment that it was at its beginning. Risk simply cannot be described by a single number. Intuitively we understand that risk varies from investment to investment: a government bond is not as risky as the stock of a high-technology company. But investments do not provide information about their risks the way food packages provide nutritional data.

  Seth Klarman

  Technology, Government, Data

  13 Copy quote

• To achieve long-term success over many financial market and economic cycles, observing a few rules is not enough. Too many things change too quickly in the investment world for that approach to succeed. It is necessary instead to understand the rationale behind the rules in order to appreciate why they work when they do and don't when they don't.

  Seth Klarman

  Order, Long, Appreciate

  12 Copy quote

• Pressure to produce over the short term - a gun to the head of everyone - encourages excessive risk taking which manifests itself in several ways - fully invested posture at all times, the use of leverage, and a market centric orientation that makes it difficult to stand apart from the crowd and take a long term perspective.

  Seth Klarman

  Gun, Perspective, Long

  12 Copy quote

• Things that have never happened before are bound to occur with some regularity. You must always be prepared for the unexpected, including sudden, sharp downward swings in markets and the economy. Whatever adverse scenario you can contemplate, reality can be far worse.

  Seth Klarman

  Reality, Swings, Unexpected

  10 Copy quote

Page 3 of 8

First

← Prev

1

2

3

4

5

6

7

8

Next →

• facebook
• twitter
• googleplus
• email
• linkedin