Buying Quote by Seth Klarman
“The strategy of buying what's in favor is a fool's errand, ensuring long-term underperformance. Only by standing against the prevailing winds - selectively, but resolutely - can an investor prosper over time. But for a while, a value investor typically underperforms.”
About This Quote
Source Book: Margin of Safety, 1991
Investors should resist popular trends and selectively oppose them to achieve long‑term success, despite short‑term underperformance.
In simple terms: Going against the crowd can yield better returns over time.
Key Takeaway
Adopt contrarian strategies for lasting gains.
Themes
value investing
contrarian
risk management
Mood
analytical
cautious
Type
financial
strategic
When to use this quote
- portfolio construction
- financial planning
- investment education
Key Concepts
market psychology
behavioral finance
Questions to Reflect On
- How much underperformance can you tolerate?
- When is it wise to follow the crowd?
A Different Perspective
Contrarian moves may increase short‑term volatility.
