Advantage Quote by Seth Klarman
“To value investors the concept of indexing is at best silly and at worst quite hazardous. Warren Buffett has observed that "in any sort of a contest - financial, mental or physical - it's an enormous advantage to have opponents who have been taught that it's useless to even try." I believe that over time value investors will outperform the market and that choosing to match it is both lazy and shortsighted.”
About This Quote
Source Book: Margin of Safety, Seth Klarman, 1991
Indexing is seen as lazy; value investing, though risky, can beat the market over time.
In simple terms: Indexing is lazy; value investing can outperform.
Key Takeaway
Value investors should stay disciplined.
Themes
investment
risk
value investing
Mood
cautious
analytical
Type
financial
investment
When to use this quote
- portfolio construction
- long‑term investing
- risk management
Key Concepts
behavioral finance
market efficiency
Questions to Reflect On
- What are the risks of passive investing?
- How can investors avoid complacency?
A Different Perspective
Value investing requires deep analysis and patience.
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