Seth Klarman Quotes - Page 4

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• Investment success cannot be captured in a mathematical equation or a computer program.

  Seth Klarman

  Investment Success, Mathematical Equations, Computer

  28 Copy quote

• My view is that an investor is better off knowing a lot about a few investments than knowing a little about each of a great many holdings. One's very best idea's are likely to generate higher returns for a given level of risk than one's hundredth or thousandth best idea.

  Seth Klarman

  Views, Ideas, Knowing

  22 Copy quote

• Value investing requires a great deal of hard work, unusually strict discipline, and a long-term investment horizon. Few are willing and able to devote sufficient time and effort to become value investors, and only a fraction of those have the proper mind-set to succeed.

  Seth Klarman

  Hard Work, Discipline, Long

  13 Copy quote

• A value strategy is of little use to the impatient investor since it usually takes time to pay off.

  Seth Klarman

  Use, Littles, Pay

  7 Copy quote

• Value investors will not invest in businesses that they cannot readily understand or ones they find excessively risky. Hence few value investors will own the shares of technology companies. Many also shun commercial banks, which they consider to have unanalyzable assets, as well as property and casualty insurance companies, which have both unanalyzable assets and liabilities.

  Seth Klarman

  Technology, Commercial Banks, Share

  15 Copy quote

• 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.

  Seth Klarman

  Believe, Mean, Loss

  12 Copy quote

• Investors should pay attention not only to whether but also to why current holdings are undervalued. It is critical to know why you have made an investment and to sell when the reason for owning it no longer applies. Look for investments with catalysts that may assist directly in the realization of underlying value. Give reference to companies having good managements with a personal financial stake in the business. Finally, diversify your holdings and hedge when it is financially attractive to do so.

  Seth Klarman

  Giving, Good Man, Attention

  8 Copy quote

• When a Wall Street analyst or broker expresses optimism, investors must take it with a grain of salt.

  Seth Klarman

  Wall, Optimism, Grain Of Salt

  7 Copy quote

• Benjamin Graham wrote, "Those with enterprise haven't the money, and those with money haven't the enterprise, to buy stocks when they are cheap."

  Seth Klarman

  Enterprise, Havens

  7 Copy quote

• The latest trade of a security creates a dangerous illusion that its market price approximates its true value. This mirage is especially dangerous during periods of market exuberance. The concept of "private market value" as an anchor to the proper valuation of a business can also be greatly skewed during ebullient times and should always be considered with a healthy degree of skepticism.

  Seth Klarman

  Anchors, Healthy, Degrees

  7 Copy quote

• A commodity doesn't have the same characteristics as a security, characteristics that allow for analysis. Other than a recent sale or appreciation due to inflation, analyzing the current or future worth of a commodity is nearly impossible.

  Seth Klarman

  Appreciation, Analysis, Analyzing

  12 Copy quote

• It is always easiest to run with the herd; at times, it can take a deep reservoir of courage and conviction to stand apart from it. Yet distancing yourself from the crowd is an essential component of long-term investment success.

  Seth Klarman

  Running, Investment Success, Long

  12 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

  9 Copy quote

• While no one wishes to incur losses, you couldn't prove it from an examination of the behavior of most investors and speculators. The speculative urge that lies within most of us is strong; the prospect of a free lunch can be compelling, especially when others have already seemingly partaken. It can be hard to concentrate on potential losses while others are greedily reaching for gains and your broker is on the phone offering shares in the latest "hot" initial public offering. Yet the avoidance of loss is the surest way to ensure a profitable outcome.

  Seth Klarman

  Strong, Lying, Loss

  10 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

• When a stock is selling at a discount to liquidation value per share, a near rock-bottom appraisal, it is frequently an attractive investment.

  Seth Klarman

  Rocks, Investment, Selling

  15 Copy quote

• Here’s how to know if you have the makeup to be an investor. How would you handle the following situation? Let’s say you own a Procter & Gamble in your portfolio and the stock price goes down by half. Do you like it better? If it falls in half, do you reinvest dividends? Do you take cash out of savings to buy more? If you have the confidence to do that, then you’re an investor. If you don’t, you’re not an investor, you’re a speculator, and you shouldn’t be in the stock market in the first place.

  Seth Klarman

  Fall, Makeup, Saving

  10 Copy quote

• Value investing is risk aversion.

  Seth Klarman

  Risk, Insightful, Investing

  21 Copy quote

• We buy expecting to hold a bond to maturity and a stock forever.

  Seth Klarman

  Maturity, Forever, Expecting

  "Jason Zweig Interviews Seth Klarman At CFA Institute Annual Conference". Interview with Jason Zweig, www.gurufocus.com. July 15, 2010.

  9 Copy quote

• Investing today may well be harder than it has been at any time in our three decades of existence.

  Seth Klarman

  Three, Investing, May

  16 Copy quote

• I think Buffett is a better investor than me because he has a better eye toward what makes a great business. And when I find a great business I'm happy to buy it and hold it. Most businesses don't look so great to me.

  Seth Klarman

  Eye, Thinking, Looks

  10 Copy quote

• Value investing is the discipline of buying shares at a significant discount from their current underlying values and holding them until more of their value is realised. The element of a bargain is the key to the process.

  Seth Klarman

  Keys, Discipline, Investing

  9 Copy quote

• Do not trust financial market risk models. Despite the predilection of some analysts to model the financial markets using sophisticated mathematics, the markets are governed by behavioral science, not physical science.

  Seth Klarman

  Risk, Financial, Sophisticated

  16 Copy quote

• Flexible approach - will look at ALL asset classes.

  Seth Klarman

  Class, Looks, Assets

  7 Copy quote

• Courage is a function of process.

  Seth Klarman

  Process, Function

  "Jason Zweig Interviews Seth Klarman At CFA Institute Annual Conference". Interview with Jason Zweig, www.gurufocus.com. July 15, 2010.

  4 Copy quote

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