If you are predisposed to be patient, disciplined and psychologically appreciate the idea of buying bargains, then you're likely to be good at it. If you have a need for action, if you want to be involved in the new and exciting technological breakthroughs of our time, that's great, but you're not a value investor, and you shouldn't be one.
Seth KlarmanMany LBOs are man-made disasters. When the price paid is excessive, the equity portion of an LBO is really an out-of-the-money call option. Many fiduciaries placed large amounts of the capital under their stewardship into such options in 2006 and 2007.
Seth KlarmanGold is unique because it has the age-old aspect of being viewed as a store of value. Nevertheless, itโs still a commodity and has no tangible value, and so I would say that gold is a speculation. But because of my fear about the potential debasing of paper money and about paper money not being a store of value, I want some exposure to gold.
Seth KlarmanIt is crucial in a sound investment process to search a mile wide than a mile deep with they find something - also.. never stop digging for information.
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