We are big fans of fear, and in investing it is clearly better to be scared than sorry.
Seth KlarmanIt is important to remember that value investing is not a perfect science. It is an, with an ongoing need for judgment, refinement, patience, and reflection. It requires endless curiosity, the relentless pursuit of additional information, the raising of questions, and the search for answers. It necessitates dealing with imperfect information - knowing you will never know everything and that that must not prevent you from acting. It requires a precarious balance between conviction, steadfastness in the face of adversity, and doubt - keeping in mind the possibility that you could be wrong.
Seth KlarmanThere 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.
Seth KlarmanHereโs how to know if you have the makeup to be an investor. How would you handle the following situation? Letโs say you own a Procter & Gamble in your portfolio and the stock price goes down by half. Do you like it better? If it falls in half, do you reinvest dividends? Do you take cash out of savings to buy more? If you have the confidence to do that, then youโre an investor. If you donโt, youโre not an investor, youโre a speculator, and you shouldnโt be in the stock market in the first place.
Seth Klarman