---
title: "Meaning & Key Takeaway of: Value investors will not invest in…"
description: "\"Value investors will not invest in businesses that they cannot readily understand or ones they find excessively risky. Hence few value investors will o..."
image: "https://sms4smile.com/quotes/i/5e1/seth-klarman-1979_assets_value-investors-will-not-invest-in-busin_3095052.png"
---

#  Value investors will not invest in businesses that they…

![“Value investors will not invest in businesses that they cannot readily understand or ones they find excessively risky. Hence few value investors will own the shares of technology companies. Many also shun commercial banks, which they consider to have unanalyzable assets, as well as property and…” quote by Seth Klarman](https://sms4smile.com/quotes/i/5e1/seth-klarman-1979_assets_value-investors-will-not-invest-in-busin_3095052.png)   [Download](https://sms4smile.com/quotes/i/5e1/seth-klarman-1979_assets_value-investors-will-not-invest-in-busin_3095052.png) [Open image](https://sms4smile.com/quotes/i/5e1/seth-klarman-1979_assets_value-investors-will-not-invest-in-busin_3095052.png)

> “Value investors will not invest in businesses that they cannot readily understand or ones they find excessively risky. Hence few value investors will own the shares of technology companies. Many also shun commercial banks, which they consider to have unanalyzable assets, as well as property and casualty insurance companies, which have both unanalyzable assets and liabilities.”

[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.

Value investors avoid businesses that are complex or highly risky, focusing on clear, understandable assets.

**In simple terms:** Investors stick to simple, low‑risk assets.

Key Takeaway

Focus on clear, understandable investments.

Themes

value investing risk management asset clarity

Mood

cautious analytical

Type

financial educational

When to use this quote

- stock selection
- portfolio construction
- risk assessment

Key Concepts

Fundamental analysis margin of safety investment discipline

Questions to Reflect On

- How do you assess understandability of a business?
- What risks do you overlook in simple assets?

A Different Perspective

Complex assets can hide hidden liabilities.

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