Benefits Quote by Seth Klarman
“Investors frequently benefit from making decisions with less than perfect knowledge and are well rewarded for bearing the risk of uncertainty. The time other investors spend delving into the last unanswered detail may cost them the chance to buy into situations at prices so low they offer a margin of safety despite the incomplete information”
About This Quote
Source Book: Margin of Safety, 1991
Investors can profit by acting on incomplete information, as uncertainty can create cheap opportunities for those willing to accept risk.
In simple terms: Risk and uncertainty can lead to profitable investments.
Key Takeaway
Embrace uncertainty, seek safety margins.
Themes
investment
risk
uncertainty
opportunity
strategy
Mood
cautious
optimistic
Type
investment
philosophical
When to use this quote
- stock selection
- venture capital
- real estate
- market timing
- portfolio construction
Key Concepts
margin of safety
probability
behavioral finance
information asymmetry
Questions to Reflect On
- When is uncertainty a signal to act?
- How to balance risk and information gaps?
A Different Perspective
Overreliance on uncertainty can lead to reckless bets.
![“Wall Street sometimes gets confused between risk and uncertainty, and you can profit handsomely from that confusion. The low-risk, high-uncertainty [situation] gives us our most sought after coin-toss odds. Heads, I win; tails, I don't lose much.” quote by Mohnish Pabrai](https://sms4smile.com/quotes/img-quotes/a52/mohnish-pabrai-17471_coins_wall-street-sometimes-gets-confused-betw_1495973.jpg)
![“[The Dalai Lama] told me some years ago, "I've made every concession to China, and I've been as open and tolerant as I could, and still things get worse in Tibet." If you look at it from one point of view, as he himself says, his monastic position of forbearance and nonviolence hasn't reaped any…” quote by Pico Iyer](https://sms4smile.com/quotes/img-quotes/9fe/pico-iyer-1252_benefits_the-dalai-lama-told-me-some-years-ago-i_678.jpg)
