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Things that have never happened before are bound to occur with some regularity. You must always be prepared for the unexpected, including sudden, sharp downward swings in markets and the economy. Whatever adverse scenario you can contemplate, reality can be far worse.

Seth Klarman

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Seth Klarman
Age: 67
Born: 1957
Born: May 21
New York City
New York
Seth Andrew Klarman
Happened
Sudden
Adverse
Whatever
Bound
Contemplate
Reality
Unexpected
Scenarios
Must
Bounds
Swings
Always
Worse
Contemplating
Things
Including
Occur
Downward
Never
Prepared
Markets
Regularity
Economy
Sharp
Scenario

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Value investing requires a great deal of hard work, unusually strict discipline, and a long-term investment horizon. Few are willing and able to devote sufficient time and effort to become value investors, and only a fraction of those have the proper mind-set to succeed.
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Investment success cannot be captured in a mathematical equation or a computer program.
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To achieve long-term success over many financial market and economic cycles, observing a few rules is not enough. Too many things change too quickly in the investment world for that approach to succeed. It is necessary instead to understand the rationale behind the rules in order to appreciate why they work when they do and don't when they don't.
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At Baupost, we constantly ask: 'What should we work on today?' We keep calling and talking. We keep gathering information. You never have perfect information. So you work, work and work. Sometimes we thumb through ValuLine. How you fill your inbox is very important.
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There is no amount of bad news that the markets cannot see past.
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We are big fans of fear, and in investing it is clearly better to be scared than sorry.
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We continue to adhere to a common-sense view of risk - how much we can lose and the probability of losing it. While this perspective may seem over simplisticor even hopelessly outdated, we believe it provides a vital clarity about the true risks in investing.
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I find value investing to be a stimulating, intellectually challenging, ever changing, and financially rewarding discipline
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I think Buffett is a better investor than me because he has a better eye toward what makes a great business. And when I find a great business I'm happy to buy it and hold it. Most businesses don't look so great to me.
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Complexity - limits competition.
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Macro worries are like sports talk radio. Everyone has a good opinion which probably means that none of them are good.
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Value investing is predicated on the efficient market hypothesis being wrong.
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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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