--- title: "Meaning & Key Takeaway of: Investors frequently benefit from making…" description: "\"Investors frequently benefit from making decisions with less than perfect knowledge and are well rewarded for bearing the risk of uncertainty. The time..." image: "https://sms4smile.com/quotes/i/051/seth-klarman-1979_benefits_investors-frequently-benefit-from-making_1692253.png" --- # Investors frequently benefit from making decisions with… ![“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…” quote by Seth Klarman](https://sms4smile.com/quotes/i/051/seth-klarman-1979_benefits_investors-frequently-benefit-from-making_1692253.png) [Download](https://sms4smile.com/quotes/i/051/seth-klarman-1979_benefits_investors-frequently-benefit-from-making_1692253.png) [Open image](https://sms4smile.com/quotes/i/051/seth-klarman-1979_benefits_investors-frequently-benefit-from-making_1692253.png) > “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” [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. 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. ★ ★ ★ ★ ★ No ratings yet [Chance](https://sms4smile.com/quotes/about/chance/) [Customer](https://sms4smile.com/quotes/about/customer/) [Decision](https://sms4smile.com/quotes/about/decision/) [Decision making](https://sms4smile.com/quotes/about/decision-making/) [Delving](https://sms4smile.com/quotes/about/delving/) [Doubt](https://sms4smile.com/quotes/about/doubt/) [Incomplete information](https://sms4smile.com/quotes/about/incomplete-information/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investors](https://sms4smile.com/quotes/about/investors/) [Making decisions](https://sms4smile.com/quotes/about/making-decisions/) [Risk](https://sms4smile.com/quotes/about/risk/) [Safety](https://sms4smile.com/quotes/about/safety/) [Uncertainty](https://sms4smile.com/quotes/about/uncertainty/) ## Related quotes > [Where the quest for knowledge is relatively, and now almost absolutely, unrestrained, the public benefit will be great, especially where the certainty of the…](https://sms4smile.com/quotes/paul-johnson/where-the-quest-for-knowledge-is-relatively-and-now-almost-absolutely/) [Paul Johnson](https://sms4smile.com/quotes/author/paul-johnson/) > [However, optimism is highly valued, socially and in the market; people and firms reward the providers of dangerously misleading information more than they reward…](https://sms4smile.com/quotes/daniel-kahneman/however-optimism-is-highly-valued-socially-and-in-the-market-people/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“In the short run, however, stock returns are very volatile, driven by changes in earnings, interest rates, risk, and uncertainty, as well as psychological…](https://sms4smile.com/quotes/jeremy-j-siegel/in-the-short-run-however-stock-returns-are-very-volatile-driven-by/) [Jeremy J. 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That feeling of not knowing too much about something… Incomplete information… Endless possibilities… When you don’t know much about something, it’s…](https://sms4smile.com/quotes/erol-ozan/isn-t-that-wonderful-that-feeling-of-not-knowing-too-much-about/) [Erol Ozan](https://sms4smile.com/quotes/author/erol-ozan/) > [“Time matters most when decisions are irreversible. And yet many irreversible decisions must be made on the basis of incomplete information.”](https://sms4smile.com/quotes/peter-l-bernstein/time-matters-most-when-decisions-are-irreversible-and-yet-many/) [Peter L. Bernstein](https://sms4smile.com/quotes/author/peter-l-bernstein/) > [“There is risk, known and unknown, in all aspects of life. We often consider the loss of life the only serious risk. Unless we…](https://sms4smile.com/quotes/mark-twight/there-is-risk-known-and-unknown-in-all-aspects-of-life-we-often/) [Mark Twight](https://sms4smile.com/quotes/author/mark-twight/) ## More by Seth Klarman > [Unlike return, however, risk is no more quantifiable at the end of an investment that it was at its beginning. Risk simply cannot be…](https://sms4smile.com/quotes/seth-klarman/unlike-return-however-risk-is-no-more-quantifiable-at-the-end-of-an/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Because investors are not usually penalized for adhering to conventional practices, doing so is the less professionally risky strategy, even though it virtually guarantees…](https://sms4smile.com/quotes/seth-klarman/because-investors-are-not-usually-penalized-for-adhering-to/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Value investing is risk aversion.](https://sms4smile.com/quotes/seth-klarman/value-investing-is-risk-aversion/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Be focused on process and not outcome](https://sms4smile.com/quotes/seth-klarman/be-focused-on-process-and-not-outcome/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [There is an old saying, "How did you go bankrupt?" 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They are blissfully unaware of adverse selection and moral hazard. Investors should never trust them.](https://sms4smile.com/quotes/seth-klarman/ratings-agencies-are-highly-conflicted-unimaginative-dupes-they-are/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [It is crucial to have a strategy in place before problems hit, precisely because no one can accurately predict the future direction of the…](https://sms4smile.com/quotes/seth-klarman/it-is-crucial-to-have-a-strategy-in-place-before-problems-hit/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) [Explore all 193 Seth Klarman quotes ](https://sms4smile.com/quotes/author/seth-klarman/) ## More Benefits quotes > [If the members of parliament no longer consider themselves mandatories of the taxpayers but deputies of those receiving salaries, wages, subsidies, doles, and other…](https://sms4smile.com/quotes/ludwig-von-mises/if-the-members-of-parliament-no-longer-consider-themselves/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [ \[The Dalai Lama\] told me some years ago, "I've made every concession to China, and I've been as open and tolerant as I could,… ](https://sms4smile.com/quotes/pico-iyer/the-dalai-lama-told-me-some-years-ago-i-ve-made-every-concession-to/) [Pico Iyer](https://sms4smile.com/quotes/author/pico-iyer/) > [Anger is a rough water; if you can canalize it into a water mill, you can benefit from it. 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It is about the power of the state as applied to individuals,…](https://sms4smile.com/quotes/kevin-rudd/politics-is-about-power-it-is-about-the-power-of-the-state-it-is/) [Kevin Rudd](https://sms4smile.com/quotes/author/kevin-rudd/) > [Therefore, I see whatever exists as good, death is to me like life, sin like holiness, wisdom like foolishness, everything has to be as…](https://sms4smile.com/quotes/hermann-hesse/therefore-i-see-whatever-exists-as-good-death-is-to-me-like-life-sin/) [Hermann Hesse](https://sms4smile.com/quotes/author/hermann-hesse/) > [Trust is about keeping commitments, but in many instances, circumstances change and organizations therefore shed commitments, things such as retiree medical benefits, pension obligations,…](https://sms4smile.com/quotes/jeffrey-pfeffer/trust-is-about-keeping-commitments-but-in-many-instances/) [Jeffrey Pfeffer](https://sms4smile.com/quotes/author/jeffrey-pfeffer/) > [Neither novels or their readers benefit from any attempts to divine whether any facts hide inside a story. 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