Creator Quote by Seth Klarman
“Value in relation to price, not price alone, must determine your investment decisions. If you look to Mr Market as a creator of investment opportunities (where price departs from underlying value), you have the makings of a value investor. If you insist on looking to Mr Market for investment guidance however, you are probably best advised to hire someone else to manage your money.”
About This Quote
Source Book: Margin of Safety by Seth Klarman, 1991
Investment decisions should be based on intrinsic value versus market price, not on price alone; relying on the market for guidance suggests professional management.
In simple terms: Focus on value, not price alone.
Key Takeaway
Assess value before acting.
Themes
investment
value
valuation
risk
decisionmaking
Mood
cautious
analytical
Type
advisory
educational
When to use this quote
- Stock picking
- portfolio construction
- risk assessment
- financial planning
Key Concepts
Intrinsic value
market inefficiency
behavioral finance
Questions to Reflect On
- Do you evaluate underlying fundamentals?
- How do you guard against market hype?
A Different Perspective
Market prices can be noisy and misleading, leading to poor timing.
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