Seth Klarman: Investing Requires A Degree Of Arrogance Tempered With The Humility Of Knowing We Could Be Wrong

Johnny HopkinsSeth KlarmanLeave a Comment

Several years ago Jason Zweig did a great interview with Seth Klarman titled – Opportunities for Patient Investors, which was published by the CFA Institute. While the entire interview provides a number of value investing insights, one answer in particular provides a unique insight into Klarman’s psychology towards investing saying: “In … Read More

Mohnish Pabrai: Here’s Why It’s So Difficult For Analysts and Investment Managers To Calculate Future Earnings

Johnny HopkinsMohnish PabraiLeave a Comment

One of our favorite Mohnish Pabrai articles is one he wrote called – Astronomers, Astronauts and Styles of Investing. It provides some great insights into why it’s so difficult for analysts and investment managers to calculate the future earnings of a company and make their forecasts. Here’s an excerpt from … Read More

Outperformance Means Living Through Periods of Underperformance

Johnny HopkinsWarren BuffettLeave a Comment

In Berkshire Hathaway’s latest annual shareholder letter Warren Buffett provides a great illustration of how price randomness in the short term can obscure longterm growth in value. His following real-life example demonstrates that in order to achieve longterm outperformance investors must suffer through periods of significant underperformance. Here’s an excerpt … Read More

Seth Klarman: “A Margin Of Safety Is Necessary As Investors Are Human And Do Make Mistakes”

Johnny HopkinsSeth KlarmanLeave a Comment

Seth Klarman wrote an investing classic called – Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor. There’s one passage in particular in which Klarman encapsulates his entire value investing strategy saying, “A margin of safety is necessary because valuation is an imprecise art, the future is unpredictable, … Read More