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Quote by Seth Klarman

“Costs and liabilities are rarely overstated.”

Quote by Seth Klarman

Author

Seth Klarman is an American author and value investor, serving as the president of The Baupost Group, a Boston-based investment firm. He is renowned for his extensive contributions to the field of value investing and has authored several books on the subject, most notably 'Margin of Safety: Risk-Averse Investing Strategies for the Thoughtful Investor'. more

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“An investor who proposes to ignore near-term market fluctuations needs greater resources for safety and must not operate on so large a scale, if at all, with borrowed money.”

Ifs Needs Term Greater Resources Safety Scales Investors Propose Borrowed Fluctuation Borrowed Money

Book:General Theory Of Employment , Interest And Money

Source: General Theory Of Employment , Interest And Money

“It's not bringing in the new ideas that's so hard; it's getting rid of the old ones.”

Ideas Hard New Ideas

Author:John Maynard Keynes

“I believe in market economics. But to paraphrase Churchill - who said this about democracy and political regimes - a market economy might be the worst economic regime available, apart from the alternatives. I believe that people react to incentives, that incentives matter, and that prices reflect the way things should be allocated. But I also believe that market economies sometimes have market failures, and when these occur, there's a role for prudential - not excessive - regulation of the financial system.”

“But in the financial markets, without proper institutional rules, there's the law of the jungle - because there's greed! There's nothing wrong with greed, per se. It's not that people are more greedy now than they were 20 years ago. But greed has to be tempered, first, by fear of losses. So if you bail people out, there's less fear. And second, b prudential regulation and supervision to avoid certain excesses.”

People Ifs Years Firsts Law Certain Loss Years Ago Greed Financial Excess Regulation Greedy Jungle Supervision Financial Markets Bail

Author:Nouriel Roubini

“There are idiots. Look around.”

Author:Lawrence Summers

“If there is one common theme to the vast range of crises...it is that excessive debt accumulation, whether it be by the government, banks, corporations, or consumers, often poses greater systemic risks than it seems during a boom.”

Ifs Seems Government Common Greater Risk Crisis Debt Consumers Range Corporations Theme Accumulation

Author:Carmen Reinhart

“Perhaps more than anything else, failure to recognize the precariousness and fickleness of confidence - especially in cases in which large short-term debts need to be rolled over continuously - is the key factor that gives rise to the this-time-is-different syndrome. Highly indebted governments, banks, or corporations can seem to be merrily rolling along for an extended period, when bang! - confidence collapses, lenders disappear, and a crisis hits.”

Needs Giving Different Seems Government Term Cases Keys Periods Crisis Debt Disappear Factors Corporations Collapse Rolling Bangs Short Term Syndromes Indebted Lenders Rolling Along

Author:Carmen Reinhart

“The essence of the this-time-is-different syndrome is...rooted in the firmly held belief that financial crises are things that happen to other people in other countries at other times; crises do not happen to us, here and now. We are doing things better, we are smarter, we have learned from past mistakes. The old rules of valuation no longer apply. Unfortunately, a highly leveraged economy can unwittingly be sitting with its back at the edge of a financial cliff for many years before chance and circumstance provoke a crisis of confidence that pushes it off.”

“Successful investors must temper the arrogance of taking a stand with a large dose of humility, accepting that despite their efforts and care, they may in fact be wrong.”

May Facts Care Effort Accepting Successful Humility Despite Arrogance Investors Temper Dose

Author:Seth Klarman

“Short-term performance envy causes many of the shortcomings that lock most investors into a perpetual cycle of underachievement. Watch your competitors not out of jealousy but out of respect and focus your efforts not on replicating others' portfolios but on looking for opportunities where they are not. The only way for investors to significantly outperform is to periodically stand far apart from the crowd, something few are willing, or able, to do.”

Way Able Opportunity Causes Term Effort Watches Focus Willing Performances Crowds Envy Cycles Investors Perpetual Locks Competitors Short Term Shortcomings Portfolios

Author:Seth Klarman