Most institutional investors feel compelled to swing at almost every pitch and forgo batting selectivity for frequency.
Seth KlarmanAnalysts recommendations may not produce good results. In part this is due to the pressure placed on these analysts to recommend frequently rather than wisely.
Seth KlarmanA simple rule applies: if you don't quickly comprehend what a company is doing, then management probably doesn't either.
Seth KlarmanBy investing at a discount, Benjamin Graham knew that he was unlikely to experience losses.
Seth KlarmanWall Street can be a dangerous place for investors. You have no choice but to do business there, but you must always be on your guard. The standard behavior of Wall Streeters is to pursue maximization of self-interest; the orientation is usually short term. This must be acknowledged, accepted, and dealt with. If you transact business with Wall Street with these caveats in mind, you can prosper. If you depend on Wall Street to help you, investment success may remain elusive.
Seth KlarmanTo value investors the concept of indexing is at best silly and at worst quite hazardous. Warren Buffett has observed that "in any sort of a contest - financial, mental or physical - it's an enormous advantage to have opponents who have been taught that it's useless to even try." I believe that over time value investors will outperform the market and that choosing to match it is both lazy and shortsighted.
Seth Klarman