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When managers are afraid of redemptions, they get liquid. We all saw how many managers went from leveraged long in 2007 to huge net cash in 2008, when the right thing to do in terms of value would have been to do the opposite.

Seth Klarman

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Seth Klarman
Age: 67
Born: 1957
Born: May 21
New York City
New York
Seth Andrew Klarman
Would
Huge
Cash
Went
Managers
Term
Opposite
Values
Opposites
Right
Terms
Many
Saws
Leveraged
Thing
Afraid
Liquid
Long
Value
Redemption

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When people give away stocks based on forced selling or fear that is usually a great opportunity.
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It sounds kind of crazy, but in times of turmoil in the market, I've felt a sort of serenity in knowing that I've checked and re-checked my work, one plus one still equals two regardless of where a stock trades right after I buy it.
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In a rising market, everyone makes money and a value philosophy is unnecessary. But because there is no certain way to predict what the market will do, one must follow a value philosophy at all times.
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When a government official says a problem has been contained, pay no attention.
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Interestingly, we have beaten the market quite handsomely over this time frame, although beating the market has never been our objective. Rather, we have consistently tried not to lose money and, in doing so, have not only protected on the downside but also outperformed on the upside.
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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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In reality, no one knows what the market will do trying to predict it is a waste of time, and investing based upon that prediction is a speculative undertaking.
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If only one word is to be used to describe what Baupost does, that word should be: 'Mispricing'. We look for mispricing due to over-reaction.
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The single greatest edge an investor can have is a long-term orientation.
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Hold cash when opportunities are not presenting themselves.
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Complexity - limits competition.
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