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Investment Quotes by Seth Klarman

42 Investment quotes by Seth Klarman

All Investment quotes Seth Klarman’s page

Seth Klarman emphasizes that good clients and teamwork matter for investment success. He warns that many investors ignore fundamentals and make short‑term choices. He also stresses that knowing a few investments deeply is better than shallow knowledge of many. He also points out that risk depends on price, not just uncertainty.

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Avoid organizing investment team into silos.

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Great investments don't just knock on the door and say "buy me".

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Loss avoidance must be the cornerstone of your investment philosophy.

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

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Having great clients is the key to investment success.

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

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

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Individual and institutional investors alike frequently demonstrate an inability to make long-term investment decisions based on business fundamentals.

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Once you adopt a value-investment strategy, any other investment behavior starts to seem like gambling.

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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 -…

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We are not so brazen as to believe that we can perfectly calibrate valuation; determining risk and return for any investment remains…

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All investors must come to terms with the relentless continuity of the investment process.

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Avoiding where others go wrong is an important step in achieving investment success. In fact, it almost assures it.

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While some might mistakenly consider value investing a mechanical tool for identifying bargains, it is actually a comprehensive investment philosophy that emphasizes…

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Risk is not inherent in an investment; it is always relative to the price paid. Uncertainty is not the same as risk.…

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To achieve long-term success over many financial market and economic cycles, observing a few rules is not enough. Too many things change…

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If an asset has cash flow or the likelihood of cash flow in the near term and is not purely dependment on…

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To a value investor, investments come in three varieties: undervalued at one price, fairly valued at another price, and overvalued at still…

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Targeting investment returns leads investors to focus on potential upside rather on downside risk ... rather than targeting a desired rate of…

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My view is that an investor is better off knowing a lot about a few investments than knowing a little about each…

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I know of no long-time practitioner who regrets adhering to a value philosophy; few investors who embrace the fundamental principles ever abandon…

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Occasionally we are asked whether it would make sense to modify our investment strategy to perform better in today's financial climate. Our…

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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…

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Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands. By having confidence in…

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Do not accept principal risk while investing short-term cash: the greedy effort to earn a few extra basis points of yield inevitably…

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Frequent comparative ranking can only reinforce a short-term investment perspective. It is understandably difficult to maintain a long-term view when, faced with…

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The risk of an investment is described by both the probability and the potential amount of loss. The risk of an investment-the…

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Wall Street can be a dangerous place for investors. You have no choice but to do business there, but you must always…

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Unlike return, however, risk is no more quantifiable at the end of an investment that it was at its beginning. Risk simply…

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Value investing requires a great deal of hard work, unusually strict discipline, and a long-term investment horizon. Few are willing and able…

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There are only a few things investors can do to counteract risk: diversify adequately, hedge when appropriate, and invest with a margin…

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Literally draw a detailed map-like an organization chart-of interlocking ownership and affiliates, many of which were also publicly traded. So, identifying one…

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It is always easiest to run with the herd; at times, it can take a deep reservoir of courage and conviction to…

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While knowing how to value businesses is essential for investment success, the first and perhaps most important step in the investment process…

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In a crisis, stocks of financial companies are great investments, because the tide is bound to turn. Massive losses on bad loans…

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At equal returns, public investments are generally superior to private investments not only because they are more liquid but also because amidst…

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Below, we itemize some of the quite different lessons investors seem to have learned as of late 2009 - false lessons, we…

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Rather, risk is a perception in each investor's mind that results from analysis of the probability and amount of potential loss from…

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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…

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One thing I want to emphasize is that, like any human being, we can discuss our view of the economy and the…

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More by Seth Klarman

Unlike return, however, risk is no more quantifiable at the end of an investment that it was at its beginning. Risk simply cannot be…

Because investors are not usually penalized for adhering to conventional practices, doing so is the less professionally risky strategy, even though it virtually guarantees…

Value investing is risk aversion.

Be focused on process and not outcome

There is an old saying, "How did you go bankrupt?" And the answer is, "Gradually, and then suddenly." The impending fiscal crisis in the…

In a rising market, everyone makes money and a value philosophy is unnecessary. But because there is no certain way to predict what the…

Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.

The best protection against risk is knowing what you are doing.

Warren Buffett once wrote that value investing is like an inoculation--it either takes or it doesn't--and when you explain to somebody what it is…

It is important to remember that value investing is not a perfect science. It is an, with an ongoing need for judgment, refinement, patience,…

Value investing is at its core the marriage of a contrarian streak and a calculator.

The avoidance of loss is the surest way to ensure a profitable outcome.

Do not suffer interim losses, relish and appreciate them

Ratings agencies are highly conflicted, unimaginative dupes. They are blissfully unaware of adverse selection and moral hazard. Investors should never trust them.

It is crucial to have a strategy in place before problems hit, precisely because no one can accurately predict the future direction of the…