Add Quote by Seth Klarman
“At the worst possible moment, when your fund is down because cheap things have gotten cheaper, you need to have capital, to have clients who will actually love the phone call and-most of the time, if not all the time-add, rather than subtract, capital.”
About This Quote
Source Book: Margin of Safety, 1991
Advocates holding cash reserves to capitalize on opportunities when markets are depressed, turning downturns into profit sources.
In simple terms: Keep cash ready to buy when prices fall.
Key Takeaway
Hold capital for market dips.
Themes
investment
capital allocation
opportunity
Mood
analytical
strategic
Type
advisory
philosophical
When to use this quote
- portfolio management
- market downturns
- client acquisition
Key Concepts
value investing
liquidity management
Questions to Reflect On
- How much cash is optimal for your strategy?
- When should you deploy reserves?
A Different Perspective
Cash may sit idle if opportunities don’t arise.
