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Because investors are not usually penalized for adhering to conventional practices, doing so is the less professionally risky strategy, even though it virtually guarantees against superior performance.

Seth Klarman

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Seth Klarman
Age: 67
Born: 1957
Born: May 21
New York City
New York
Seth Andrew Klarman
Though
Guarantees
Adhering
Less
Superior
Penalized
Even
Superiors
Professionally
Performance
Risky
Strategy
Virtually
Performances
Practices
Usually
Investors
Practice
Conventional

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The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.
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While some might mistakenly consider value investing a mechanical tool for identifying bargains, it is actually a comprehensive investment philosophy that emphasizes the need to perform in-depth fundamental analysis, pursue long-term investment results, limit risk, and resist crowd psychology.
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Value investing is risk aversion.
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When a Wall Street analyst or broker expresses optimism, investors must take it with a grain of salt.
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We don't deal in absolutes. We deal in probabilities.
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Avoiding where others go wrong is an important step in achieving investment success. In fact, it almost assures it.
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The overwhelming majority of people are comfortable with consensus, but successful investors tend to have a contrarian bent.
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If you've just stared into the abyss, quickly forget it: the lessons of history can only hold you back.
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Patience and discipline can make you look foolishly out of touch until they make you look prudent and even prescient
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Benjamin Graham wrote, Those with enterprise haven't the money, and those with money haven't the enterprise, to buy stocks when they are cheap.
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The cost of performing well in bad times can be relative underperformance in good times.
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A value strategy is of little use to the impatient investor since it usually takes time to pay off.
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Depressions aren't good but the depression mentality is good.
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There are only a few things investors can do to counteract risk: diversify adequately, hedge when appropriate, and invest with a margin of safety. It is a precisely because we do not and cannot know all the risks of an investment that we strive to invest at a discount. The bargain element helps to provide a cushion for when things go wrong.
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It turns out that value investing is something that is in your blood. There are people who just don't have the patience and discipline to do it, and there are people who do. So it leads me to think it's genetic.
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Investors need to pick their poison: Either make more money when times are good and have a really ugly year every so often, or protect on the downside and don't be at the party so long when things are good.
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Be focused on process and not outcome
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