Entrepreneurs / Investors

43 Seth Klarman Quotes on Success (INVESTING)

Top 10 Most Famous Seth Klarman Quotes (BEST)

“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.”

Seth Klarman
The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.
The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.
Patience and discipline can make you look foolishly out of touch until they make you look prudent and even prescient.
Patience and discipline can make you look foolishly out of touch until they make you look prudent and even prescient.
Over the long run, the crowd is always wrong.
Over the long run, the crowd is always wrong.
If you can remember that stocks aren't pieces of paper that gyrate all the time --they are fractional interests in businesses -- it all makes sense.
If you can remember that stocks aren’t pieces of paper that gyrate all the time –they are fractional interests in businesses — it all makes sense.
Never stop reading. History doesn't repeat, but it does rhyme.
Never stop reading. History doesn’t repeat, but it does rhyme.
A simple rule applies: if you don't quickly comprehend what a company is doing, then management probably doesn't either.
A simple rule applies: if you don’t quickly comprehend what a company is doing, then management probably doesn’t either.
Typically, we make money when we buy things. We count the profits later, but we know we have captured them when we buy the bargain.
Typically, we make money when we buy things. We count the profits later, but we know we have captured them when we buy the bargain.
The prevailing view has been that the market will earn a high rate of return if the holding period is long enough, but entry point is what really matters.
The prevailing view has been that the market will earn a high rate of return if the holding period is long enough, but entry point is what really matters.
Do not suffer interim losses, relish and appreciate them.
Do not suffer interim losses, relish and appreciate them.

10 Wise Seth Klarman Quotes On Investments to Live by (WISDOM)

“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.”

Seth Klarman
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.
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.
Investment success cannot be captured in a mathematical equation or a computer program.
Investment success cannot be captured in a mathematical equation or a computer program.

“Value investing is simple to understand but difficult to implement. Value investors are not super sophisticated analytical wizards who create and apply intricate computer models to find attractive opportunities or assess underlying value. The hard part is discipline, patience, and judgment. Investors need discipline to avoid the many unattractive pitches that are thrown, patience to wait for the right pitch, and judgment to know when it is time to swing.”

Seth Klarman
Loss avoidance must be the cornerstone of your investment philosophy.
Loss avoidance must be the cornerstone of your investment philosophy.
In investing it is never wrong to change your mind. It is only wrong to change your mind and do nothing about it.
In investing it is never wrong to change your mind. It is only wrong to change your mind and do nothing about it.

“In a crisis, stocks of financial companies are great investments, because the tide is bound to turn. Massive losses on bad loans and soured investments are irrelevant to value; improving trends and future prospects are what matter, regardless of whether profits will have to be used to cover loan losses and equity shortfalls for years to come.”

Seth Klarman
When all feels calm and prices surge, the markets may feel safe; but, in fact, they are dangerous because few investors are focusing on risk.
When all feels calm and prices surge, the markets may feel safe; but, in fact, they are dangerous because few investors are focusing on risk.
We worry top-down, but we invest bottom-up.
We worry top-down, but we invest bottom-up.
People should be highly skeptical of anyone's including their own, ability to predict the future, and instead pursue strategies that can survive whatever may occur.
People should be highly skeptical of anyone’s including their own, ability to predict the future, and instead pursue strategies that can survive whatever may occur.

2 Seth Klarman Quotes on Warren Buffet

Warren Buffett is right when he says you should invest as if the market is going to be closed for the next five years. The fundamental principles of value investing, if they make sense to you, can allow you to survive and prosper when everyone else is rudderless. We have a proven map with which to navigate. It sounds kind of crazy, but in times of turmoil in the market. I’ve felt a sort of serenity in knowing that if I’ve checked and rechecked my work, one plus one still equals two regardless of where a stock trades right after I buy it.”

Seth Klarman

“Warren Buffett likes to say that the first rule of investing is “Don’t lose money,” and the second rule is, “Never forget the first rule.” I too believe that avoiding loss should be the primary goal of every investor. This does not mean that investors should never incur the risk of any loss at all. Rather “don’t lose money” means that over several years an investment portfolio should not be exposed to appreciable loss of principal.”

Seth Klarman

5 Wise Seth Klarman Quotes on Buying and Selling

“Selling, in particular, can be a challenge; many investors are tempted to become more optimistic when a security is performing well. This temptation must be resisted; tax considerations aside, when a security reaches full valuation, there is no longer a reason to own it.”

Seth Klarman
The near absence of bargains works as a reverse indicator for us. When we find there is little worth buying, there is probably much worth selling.
The near absence of bargains works as a reverse indicator for us. When we find there is little worth buying, there is probably much worth selling.

“You must buy on the way down. There is far more volume on the way down than on the way back up, and far less competition among buyers. It is almost always better to be too early than too late, but you must be prepared for price markdowns on what you buy.”

Seth Klarman
Sometimes buying early on the way down looks like being wrong, but it isn't.
Sometimes buying early on the way down looks like being wrong, but it isn’t.
There's no such thing as a value company. Price is all that matters. At some price, an asset is a buy, at another it's a hold, and at another it's a sell.
There’s no such thing as a value company. Price is all that matters. At some price, an asset is a buy, at another it’s a hold, and at another it’s a sell.

8 Wise Seth Klarman Quotes on What Investors Should Keep In Mind

“Investors should always keep in mind that the most important metric is not the returns achieved but the returns weighed against the risks incurred. Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.”

Seth Klarman
The single greatest edge an investor can have is a long-term orientation.
The single greatest edge an investor can have is a long-term orientation.

“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.”

Seth Klarman
Graham's wonderful sentence as, an investor needs only two things: cash and courage. Having only one of them is not enough.
Graham’s wonderful sentence as, an investor needs only two things: cash and courage. Having only one of them is not enough.

“Targeting investment returns leads investors to focus on potential upside rather on downside risk rather than targeting a desired rate of return, even an eminently reasonable one, investors should target risk.”

Seth Klarman
A value strategy is of little use to the impatient investor since it usually takes time to pay off.
A value strategy is of little use to the impatient investor since it usually takes time to pay off.
The way to maximize outcome is to focus on the process.
The way to maximize outcome is to focus on the process.
We are big fans of fear, and in investing it is clearly better to be scared than sorry.
We are big fans of fear, and in investing it is clearly better to be scared than sorry.

3 Wise Seth Klarman Quotes on Successful Investors

“Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands. By having confidence in their own analysis and judgement, they respond to market forces not with blind emotion but with calculated reason. Successful investors, for example, demonstrate caution in frothy markets and steadfast conviction in panicky ones. Indeed, the very way an investor views the market and it’s price fluctuations is a key factor in his or her ultimate investment success or failure.”

Seth Klarman
The overwhelming majority of people are comfortable with consensus, but successful investors tend to have a contrarian bent.
The overwhelming majority of people are comfortable with consensus, but successful investors tend to have a contrarian bent.

“Successful investors like stocks better when they’re going down. When you go to a department store or a supermarket, you like to buy merchandise on sale, but it doesn’t work that way in the stock market. In the stock market, people panic when stocks are going down, so they like them less when they should like them more. When prices go down, you shouldn’t panic, but it’s hard to control your emotions when you’re overextended, when you see your net worth drop in half and you worry that you won’t have enough money to pay for your kids’ college.”

Seth Klarman

3 Wise Seth Klarman Quotes on Value Investors

“Value investors have to be patient and disciplined, but what I really think is you need not to be greedy. If you’re greedy and you leverage, you blow up. Almost every financial blow up is because of leverage.”

Seth Klarman
Value investors should completely exit a security by the time it reaches full value; owning overvalued securities is the realm of speculators.
Value investors should completely exit a security by the time it reaches full value; owning overvalued securities is the realm of speculators.

“To a value investor, investments come in three varieties: undervalued at one price, fairly valued at another price, and overvalued at still some higher price. The goal is to buy the first, avoid the second, and sell the third.”

Seth Klarman

2 Wise Seth Klarman Quotes on Risks

“Risk is not inherent in an investment; it is always relative to the price paid. Uncertainty is not the same as risk. Indeed, when great uncertainty – such as in the fall of 2008 – drives securities prices to especially low levels, they often become less risky investments.”

Seth Klarman
The best protection against risk is knowing what you are doing.
The best protection against risk is knowing what you are doing.

(MUST READ) Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor

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