If only one word is to be used to describe what Baupost does, that word should be: 'Mispricing'. We look for mispricing due to over-reaction.

Investing is the intersection of economics and psychology.

Never stop reading. History doesn't repeat, but it does rhyme.

Like to have a catalyst - reduces dependence on the market: Distressed debt inherently has a catalyst - maturity.

Targeting investment returns leads investors to focus on potential upside rather on downside risk ... rather than targeting a desired rate of return, even an eminently reasonable one, investors should target risk.

The near absence of bargains works as a reverse indicator for us. When we find there is little worth buying, there is probably much worth selling.

You must buy on the way down. There is far more volume on the way down than on the way back up, and far less competition among buyers. It is almost always better to be too early than too late, but you must be prepared for price markdowns on what you buy.