Seth Klarman Quotes - Page 5

Quotes about:

• There are no long-term lessons - ever.

  Seth Klarman

  Long, Lessons, Term

  4 Copy quote

• While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.

  Seth Klarman

  Intelligent, Discipline, Risk

  8 Copy quote

• Limit risk with: Deep analysis Bargain purchase Sensitivity analysis.

  Seth Klarman

  Risk, Analysis, Limits

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• Individual and institutional investors alike frequently demonstrate an inability to make long-term investment decisions based on business fundamentals.

  Seth Klarman

  Long, Decision, Fundamentals

  13 Copy quote

• While knowing how to value businesses is essential for investment success, the first and perhaps most important step in the investment process is knowing where to look for opportunities

  Seth Klarman

  Opportunity, Investment Success, Knowing

  12 Copy quote

• Be sure that you are well compensated for illiquidity - especially illiquidity without control - because it can create particularly high opportunity costs.

  Seth Klarman

  Opportunity, Cost, Wells

  "The 20 Forgotten Lessons Of 2008". Seth Klarman's annual letter, www.businessinsider.com. April 28, 2010.

  11 Copy quote

• A tipping point is invisible, as we just saw in Greece. In most situations, everything appears fine until it's not fine, until, for example, no one shows up at a Treasury auction.

  Seth Klarman

  Example, Auctions, Tipping

  9 Copy quote

• Successful investors must temper the arrogance of taking a stand with a large dose of humility, accepting that despite their efforts and care, they may in fact be wrong.

  Seth Klarman

  Humility, Successful, Effort

  "When I Met the Legends of Investing - Part 4". Interview with Vishal Khandelwal, www.safalniveshak.com. June 8, 2015.

  9 Copy quote

• It's incredibly important to note that when you don't allow failure, you get more failure.

  Seth Klarman

  Important, Notes

  4 Copy quote

• There is an old saying, "How did you go bankrupt?" And the answer is, "Gradually, and then suddenly." The impending fiscal crisis in the United States will make its appearance in the same way.

  Seth Klarman

  Answers, Way, United States

  4 Copy quote

• The strategy of buying what's in favor is a fool's errand, ensuring long-term underperformance. Only by standing against the prevailing winds - selectively, but resolutely - can an investor prosper over time. But for a while, a value investor typically underperforms.

  Seth Klarman

  Wind, Long, Errands

  7 Copy quote

• One of the biggest challenges in investing is that the opportunity set available today is not the complete opportunity set that should be considered. Limiting your opportunity set to the one immediately at hand would be like limiting your spouse to the students you met in high school

  Seth Klarman

  School, Opportunity, Hands

  7 Copy quote

• I know of no long-time practitioner who regrets adhering to a value philosophy; few investors who embrace the fundamental principles ever abandon this investment approach for another

  Seth Klarman

  Regret, Philosophy, Long

  9 Copy quote

• The government can reasonably rely on debt ratings when it forms programs to lend money to buyers of otherwise unattractive debt instruments.

  Seth Klarman

  Government, Debt, Unattractive

  4 Copy quote

• Almost no one will accept responsibility for his or her role in precipitating a crisis: not leveraged speculators, not willfully blind leaders of financial institutions, and certainly not regulators, government officials, ratings agencies or politicians.

  Seth Klarman

  Responsibility, Agency, Government

  12 Copy quote

• One must understand the importance of an endless drive to get information and seek value.

  Seth Klarman

  Information, Endless, Importance

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• All investors must come to terms with the relentless continuity of the investment process.

  Seth Klarman

  Investment, Relentless, Process

  7 Copy quote

• Gold is unique because it has the age-old aspect of being viewed as a store of value. Nevertheless, it’s still a commodity and has no tangible value, and so I would say that gold is a speculation. But because of my fear about the potential debasing of paper money and about paper money not being a store of value, I want some exposure to gold.

  Seth Klarman

  Unique, Age, Gold

  9 Copy quote

• The risk of an investment is described by both the probability and the potential amount of loss. The risk of an investment-the probability of an adverse outcome-is partly inherent in its very nature. A dollar spent on biotechnology research is a riskier investment than a dollar used to purchase utility equipment. The former has both a greater probability of loss and a greater percentage of the investment at stake.

  Seth Klarman

  Loss, Risk, Dollars

  16 Copy quote

• Always look for forced urgent selling.

  Seth Klarman

  Looks, Selling, Urgent

  4 Copy quote

• Avoiding where others go wrong is an important step in achieving investment success. In fact, it almost assures it.

  Seth Klarman

  Investment Success, Important, Facts

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• I find value investing to be a stimulating, intellectually challenging, ever changing, and financially rewarding discipline

  Seth Klarman

  Discipline, Challenges, Investing

  4 Copy quote

• Wall Street can be a dangerous place for investors. You have no choice but to do business there, but you must always be on your guard. The standard behavior of Wall Streeters is to pursue maximization of self-interest; the orientation is usually short term. This must be acknowledged, accepted, and dealt with. If you transact business with Wall Street with these caveats in mind, you can prosper. If you depend on Wall Street to help you, investment success may remain elusive.

  Seth Klarman

  Wall, Investment Success, Self

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• Financial innovation can be highly dangerous, though almost no one will tell you this. New financial products are typically created for sunny days and are almost never stress-tested for stormy weather. Securitization is an area that almost perfectly fits this description; markets for securitized assets such as subprime mortgages completely collapsed in 2008 and have not fully recovered. Ironically, the government is eager to restore the securitization markets back to their pre-collapse stature.

  Seth Klarman

  Stress, Government, Weather

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• Many LBOs are man-made disasters. When the price paid is excessive, the equity portion of an LBO is really an out-of-the-money call option. Many fiduciaries placed large amounts of the capital under their stewardship into such options in 2006 and 2007.

  Seth Klarman

  Men, Stewardship, Disaster

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