All an investor can do is follow a consistently disciplined and rigorous approach; over time the returns will come
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 KlarmanAll investors must come to terms with the relentless continuity of the investment process.
Seth KlarmanLike to have a catalyst - reduces dependence on the market: Distressed debt inherently has a catalyst - maturity.
Seth KlarmanThere are only a few things investors can do to counteract risk: diversify adequately, hedge when appropriate, and invest with a margin of safety. It is a precisely because we do not and cannot know all the risks of an investment that we strive to invest at a discount. The bargain element helps to provide a cushion for when things go wrong.
Seth Klarman