Seth Klarman Quotes
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If you are predisposed to be patient, disciplined and psychologically appreciate the idea of buying bargains, then you're likely to be good at it. If you have a need for action, if you want to be involved in the new and exciting technological breakthroughs of our time, that's great, but you're not a value investor, and you shouldn't be one.
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Buying's easier, selling's hard - [it's] hard to know when to get out.
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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.
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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.
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Most investors are primarily oriented toward return, how much they can make and pay little attention to risk, how much they can lose.
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Right at the core, the mainstream has it backwards. Warren Buffett often quips that the first rule of investing is to not lose money, and the second rule is to not forget the first rule. Yet few investors approach the world with such a strict standard of risk avoidance.
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The overwhelming majority of people are comfortable with consensus, but successful investors tend to have a contrarian bent.
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Generally, the greater the stigma or revulsion, the better the bargain.
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Courage is a function of process.
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Avoid organizing investment team into silos.
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There are no long-term lessons - ever.
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The cost of performing well in bad times can be relative underperformance in good times.
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Analysts recommendations may not produce good results. In part this is due to the pressure placed on these analysts to recommend frequently rather than wisely.
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In reality, no one knows what the market will do; trying to predict it is a waste of time, and investing based upon that prediction is a speculative undertaking.
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It is crucial in a sound investment process to search a mile wide than a mile deep with they find something - also.. never stop digging for information.
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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.
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You need humility to say 'I might be wrong.'
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Depressions aren't good but the depression mentality is good.
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If you've just stared into the abyss, quickly forget it: the lessons of history can only hold you back.
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Macro worries are like sports talk radio. Everyone has a good opinion which probably means that none of them are good.
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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.
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Great investments don't just knock on the door and say "buy me".
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Warren Buffett is right when he says you should invest as if the market is going to be closed for the next five years. The fundamental principles of value investing, if they make sense to you, can allow you to survive and prosper when everyone else is rudderless. We have a proven map with which to navigate. It sounds kind of crazy, but in times of turmoil in the market. I’ve felt a sort of serenity in knowing that if I’ve checked and rechecked my work, one plus one still equals two regardless of where a stock trades right after I buy it.
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In investing it is never wrong to change your mind. It is only wrong to change your mind and do nothing about it.
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We work really hard never to get confused with what we know from what we think or hope or wish.
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The real secret to investing is that there is no secret to investing.
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Value in relation to price, not price alone, must determine your investment decisions. If you look to Mr Market as a creator of investment opportunities (where price departs from underlying value), you have the makings of a value investor. If you insist on looking to Mr Market for investment guidance however, you are probably best advised to hire someone else to manage your money.
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Almost every financial blow up is because of leverage.
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Always look for forced urgent selling.
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People should be highly sceptical of anyone's including their own, ability to predict the future, and instead pursue strategies that can survive whatever may occur.
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