Tag Archive

This article on Markets Insider has 11 of the best quotes from Seth Klarman’s latest Annual Letter. Here are three of our favourites which illustrate the sentiment of current investor psychology: 1. “We see today’s market as characterized by stretched valuations, deep complacency, and a host of looming risks.” 2. … Read More

In his book – Margin of Safety, Seth Klarman discusses why liquidity can be illusory. Here’s an excerpt from the book: Liquidity can be illusory. As Louis Lowenstein has stated, “In the stock market, there is liquidity for the individual but not for the whole community. The distributable profits of … Read More

In his book – Margin of Safety, Seth Klarman discusses how the madness of crowds creates opportunities for value investors. Here’s an excerpt from the book: A second important reason to examine the behavior of other investors and speculators is that their actions often inadvertently result in the creation of … Read More

In his book, Margin Of Safety, Seth Klarman discusses the greatest challenge for value investors. Here’s an excerpt from the book: Value investing is the discipline of buying securities at a significant discount from their current underlying values and holding them until more of their value is realized. The element … Read More

In his book Margin of Safety, Seth Klarman discusses managing the portfolio liquidity cycle. Here’s an excerpt from that book: When your portfolio is completely in cash, there is no risk of loss. There is also, however, no possibility of earning a high return. The tension between earning a high … Read More

One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More

In this presentation to Bruce Greenwald’s class, Value Investing With Legends, in March 2018 Seth Klarman discussed the competitive edges that his firm had developed in order to be successful investors. Here’s an excerpt from that presentation: One of the things that has not changed, that gives me great optimism … Read More

In his latest letter to investors, Seth Klarman discussed the possible longer-term ramifications of the COVID-19 Pandemic and included a list of eight changes to the future as we know it saying: For most of the last century, a reasonable approach to assessing a company’s future prospects was to expect … Read More

One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More

In Seth Klarman’s Book Margin of Safety he provides some great examples of how investors can hedge their portfolios, depending on what they’re currently holding. Here’s an excerpt from the book: Market risk—the risk that the overall stock market could decline—cannot be reduced through diversification but can be limited by … Read More

Here’s an article from Yahoo Finance which reports that Seth Klarman at Baupost has spent $1.5 Billion buying assets in recent weeks, and is seeking more capital for his hedge fund. Here’s an excerpt from the article: The value investor told clients this week that Baupost Group has spent about $1.5 … Read More

One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More

In his book, Margin of Safety, Seth Klarman provides some great insights into the reasons why investors should not target desired rates of return, saying: Choosing to avoid loss is not a complete investment strategy; it says nothing about what to buy and sell, about which risks are acceptable and … Read More