Home / Quotes / Quote by Seth Klarman

Quote by Seth Klarman

“The inability to hold cash and the pressure to be fully invested at all times meant that when the plug was pulled out of the tub, all boats dropped as the water rushed down the drain.”

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

You May Also Like

“At the worst possible moment, when your fund is down because cheap things have gotten cheaper, you need to have capital, to have clients who will actually love the phone call and-most of the time, if not all the time-add, rather than subtract, capital.”

Ifs Needs Moments Worst Add Phones Fund Clients Cheaper Phone Calls Cheap Things

Author:Seth Klarman

“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.”

Long Has Beens Values Term Saws Huge Opposites Redemption Managers Things To Do Right Thing Cash Liquid

Author:Seth Klarman

“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."”

Havens Enterprise

Author:Seth Klarman

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

Needs Two Enough Wonderful Sentences Two Things Investors Cash

Author:Seth Klarman

“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.”

Ifs Long Has Beens Matter Enough Views Return Periods Rate Entry Prevailing

Author:Seth Klarman

“It's awful to have a depression, but it's a great thing to have a depression mentality because it means that we are not speculating, we are not living beyond our means, we don't quit our job to take a big risk because we know we might not get another job. There is something stable about a country, a society built on those values.”

Knows Mean Country Bigs Might Jobs Values Risk Built Quitting Great Things Awful Mentality Stable

Author:Seth Klarman

“A tipping point is invisible, as we just saw in Greece. In most situations, everything appears fine until it's not fine, until, for example, no one shows up at a Treasury auction.”

Shows Situation Saws Example Fine Invisible Greece Treasury Tipping Auctions Tipping Point

Author:Seth Klarman

“There is an old saying, "How did you go bankrupt?" And the answer is, "Gradually, and then suddenly." The impending fiscal crisis in the United States will make its appearance in the same way.”

Way States Answers United United States Crisis Appearance Old Saying

Author:Seth Klarman

“The idea of interdependence is central to Buddhism, which holds that all things come into being through the mutual interactions of various causes and conditions.”

Ideas Causes Conditions Buddhism All Things Various Mutual Interaction Interdependence

Author:Daisaku Ikeda

“A commodity doesn't have the same characteristics as a security, characteristics that allow for analysis. Other than a recent sale or appreciation due to inflation, analyzing the current or future worth of a commodity is nearly impossible.”

Impossible Security Currents Appreciation Dues Analysis Characteristics Commodity Inflation Analyzing

Author:Seth Klarman