Money and Finance
- How Much Research And Analysis Are Sufficient?
From Seth Klarman, via Margin of Safety:How Much Research and Analysis Are Sufficient? Some investors insist on trying to obtain perfect knowledge about their impending investments, researching companies until they think they know everything there...
- Seth Klarman Quote
From Seth Klarman, via Margin of Safety:Because investing is as much an art as a science, investors need a margin of safety. A margin of safety is achieved when securities are purchased at prices sufficiently below underlying value to allow for human...
- Waiting For The Right Pitch
From Seth Klarman via Margin of Safety:Waiting for the Right PitchWarren Buffett uses a baseball analogy to articulate the discipline of value investors. A long-term-oriented value investor is a batter in a game where no balls or strikes are called, allowing...
- Seth Klarman Quote
From Margin of Safety(Source):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...
- Seth Klarman Letters: 1995 - Mid 2001
It is hard for me to overstate just how great these letters are. They are probably the best example I have ever seen of someone (and an entire firm) keeping his head cool and staying disciplined while just about everyone else was going crazy. A BIG thanks...
Money and Finance
Seth Klarman on worrying about asset deflation...
From Seth Klarman, via Margin of Safety:
Should investors worry about the possibility that business value may decline? Absolutely. Should they do anything about it? There are three responses that might be effective. First, since investors cannot predict when values will rise or fall, valuation should always be performed conservatively, giving considerable weight to worst-case liquidation value as well as to other methods. Second, investors fearing deflation could demand a greater than usual discount between price and underlying value in order to make new investments or to hold current positions. This means that normally selective investors would probably let even more pitches than usual go by. Finally, the prospect of asset deflation places a heightened importance on the time frame of investments and on the presence of a catalyst for the realization of underlying value. In a deflationary environment, if you cannot tell whether or when you will realize underlying value, you may not want to get involved at all. If underlying value is realized in the near-term directly for the benefit of shareholders, however, the longer-term forces that could cause value to diminish become moot.
- How Much Research And Analysis Are Sufficient?
From Seth Klarman, via Margin of Safety:How Much Research and Analysis Are Sufficient? Some investors insist on trying to obtain perfect knowledge about their impending investments, researching companies until they think they know everything there...
- Seth Klarman Quote
From Seth Klarman, via Margin of Safety:Because investing is as much an art as a science, investors need a margin of safety. A margin of safety is achieved when securities are purchased at prices sufficiently below underlying value to allow for human...
- Waiting For The Right Pitch
From Seth Klarman via Margin of Safety:Waiting for the Right PitchWarren Buffett uses a baseball analogy to articulate the discipline of value investors. A long-term-oriented value investor is a batter in a game where no balls or strikes are called, allowing...
- Seth Klarman Quote
From Margin of Safety(Source):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...
- Seth Klarman Letters: 1995 - Mid 2001
It is hard for me to overstate just how great these letters are. They are probably the best example I have ever seen of someone (and an entire firm) keeping his head cool and staying disciplined while just about everyone else was going crazy. A BIG thanks...