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Cost Quote by Seth Klarman

“Be sure that you are well compensated for illiquidity - especially illiquidity without control - because it can create particularly high opportunity costs.” quote by Seth Klarman
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“Be sure that you are well compensated for illiquidity - especially illiquidity without control - because it can create particularly high opportunity costs.”

Seth Klarman

About This Quote

Source Book: Margin of Safety, 1991

Illiquid assets without control can tie up capital, causing missed opportunities and high costs.

In simple terms: Uncontrolled illiquidity hurts returns.

Key Takeaway

Manage liquidity risks carefully.

Themes

finance risk liquidity investment

Mood

cautious analytical

Type

advisory strategic

When to use this quote

  • investment decisions
  • corporate finance
  • personal budgeting
  • market timing

Key Concepts

opportunity cost portfolio management control mechanisms

Questions to Reflect On

  • What liquidity buffers do you maintain?
  • How do you balance liquidity with return potential?
A Different Perspective

Liquidity can be necessary for long‑term strategies.

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