When you buy bargains and they become better bargains, it is easy to start to question yourself, which can impair your judgement. Real or imagined concerns about client redemptions, employee defections can greatly influence behavior away from rational.
Seth KlarmanA 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.
Seth KlarmanSuccessful investors like stocks better when theyโre going down. When you go to a department store or a supermarket, you like to buy merchandise on sale, but it doesnโt 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 shouldnโt panic, but itโs hard to control your emotions when youโre overextended, when you see your net worth drop in half and you worry that you wonโt have enough money to pay for your kidsโ college.
Seth Klarman