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.”
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.
Manage liquidity risks carefully.
Themes
Mood
Type
When to use this quote
- investment decisions
- corporate finance
- personal budgeting
- market timing
Key Concepts
Questions to Reflect On
- What liquidity buffers do you maintain?
- How do you balance liquidity with return potential?
Liquidity can be necessary for long‑term strategies.