Quotessence
Home / Quotes / Quote by Seth Klarman

Quote by Seth Klarman

“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.”

Quote by Seth Klarman

Author

Seth Klarman
Seth Klarman

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

“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.”

“The idea that you try to time purchases based on what you think business is going to do in the next year or two, I think that's the greatest mistake that investors make because it's always uncertain. People say it's a time of uncertainty. It was uncertain on September 10th, 2001, people just didn't know it. It's uncertain every single day. So take uncertainty as part of being involved in investment at all. But uncertainty can be your friend. I mean, when people are scared, they pay less for things. We try to price. We don't try to time at all.”

“A crowd thinks in images, and the image itself calls up a series of other images, having no logical connection with the first...A crowd scarcely distinguishes between the subjective and the objective. It accepts as real the images invoked in its mind, though they most often have only a very distant relation with the observed facts....Crowds being only capable of thinking in images are only to be impressed by images.”