One must understand the importance of an endless drive to get inf... by Seth Klarman

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

Seth Klarman

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Categorized in : Information Importance Endless

By investing at a discount, Benjamin Graham knew that he was unli... by Seth Klarman

By investing at a discount, Benjamin Graham knew that he was unlikely to experience losses.

unlikely investing loss

Most investors are primarily oriented toward return, how much they can make and pay little attention to risk, how much they can lose.

investing risk attention

The government can indefinitely control both short-term and long-... by Seth Klarman

The government can indefinitely control both short-term and long-term interest rates.

interest government long

You probably would not choose to dine at a restaurant whose chef always ate elsewhere. I do eat my own cooking, and I don't "dine out" when it comes to investing.

investing cooking chef

Nowhere does it say that investors should strive to make every last dollar of potential profit; consideration of risk must never take a backseat to return. Conservative positioning entering a crisis is crucial: it enables one to maintain long-term oriented, clear thinking, and to focus on new opportunities while others are distracted or even forced to sell. Portfolio hedges must be in place before a crisis hits. One cannot reliably or affordably increase or replace hedges that are rolling off during a financial crisis.

opportunity long thinking

It turns out that value investing is something that is in your blood. There are people who just don't have the patience and discipline to do it, and there are people who do. So it leads me to think it's genetic.

discipline blood thinking

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

debt unattractive government

It sounds kind of crazy, but in times of turmoil in the market, I've felt a sort of serenity in knowing that I've checked and re-checked my work, one plus one still equals two regardless of where a stock trades right after I buy it.

crazy knowing two

Investors frequently benefit from making decisions with less than perfect knowledge and are well rewarded for bearing the risk of uncertainty. The time other investors spend delving into the last unanswered detail may cost them the chance to buy into situations at prices so low they offer a margin of safety despite the incomplete information

safety decision perfect

You need humility to say 'I might be wrong.' by Seth Klarman

You need humility to say 'I might be wrong.'

humility might needs

At equal returns, public investments are generally superior to private investments not only because they are more liquid but also because amidst distress, public markets are more likely than private ones to offer attractive opportunities to average down.

return opportunity average

Short sellers age in dog years. by Seth Klarman

Short sellers age in dog years.

Do not accept principal risk while investing short-term cash: the greedy effort to earn a few extra basis points of yield inevitably leads to the incurrence of greater risk, which increases the likelihood of losses and severe illiquidity at precisely the moment when cash is needed to cover expenses, to meet commitments, or to make compelling long-term investments.

yield loss commitment

Buying's easier, selling's hard - [it's] hard to know when to get... by Seth Klarman

Buying's easier, selling's hard - [it's] hard to know when to get out.

selling easier buying

When a government official says a problem has been "contained," p... by Seth Klarman

When a government official says a problem has been "contained," pay no attention.

government pay attention

Below, we itemize some of the quite different lessons investors seem to have learned as of late 2009 - false lessons, we believe. To not only learn but also effectively implement investment lessons requires a disciplined, often contrary, and long-term-oriented investment approach. It requires a resolute focus on risk aversion rather than maximizing immediate returns, as well as an understanding of history, a sense of financial market cycles, and, at times, extraordinary patience.

focus long believe

If you've just stared into the abyss, quickly forget it: the lessons of history can only hold you back.

abyss lessons forget

There are no long-term lessons - ever. by Seth Klarman

There are no long-term lessons - ever.

lessons term long

Having clients with a long-term orientation is crucial. Nothing else is as important to the success of an investment firm.

clients important long

When you buy bargains and they become better bargains, it is easy to start to question yourself, which can impair your judgement. Real or imagined concerns about client redemptions, employee defections can greatly influence behavior away from rational.

redemption judgement real