Seth Klarman

Seth Andrew Klarman is an American billionaire investor, hedge fund manager, and author. He is a proponent of value investing. He is the chief executive and portfolio manager of the Baupost Group, a Boston-based private investment partnership he founded in 1982.

9 notes derived from Seth Klarman's work

Investing vs. Speculating

Mark Twain said that there are two times in a man’s life when he should not speculate: when he can’t afford it and when he can. Because this…

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The Nature of Risk

The risk of an investment is described by both the probability and the potential amount of loss. The risk of an investment—the probability…

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Passive Investing

Indexing is the practice of buying all the components of a market index, such as the Standard & Poor’s 500 Index, in proportion to the…

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The Institutional Performance Derby

The Short-Term Relative Performance Derby The great majority of institutional investors are plagued with a short-term, relative-performance…

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Investment Research

While knowing how to value businesses is essential for investment success, the first and perhaps most important step in the investment…

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Portfolio Management and Trading

Trading—the process of buying and selling securities—can have a significant impact on one’s investment results. Good trading decisions can…

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Investing in Financially Distressed and Bankrupt Securities

Investors have traditionally attached a stigma to the securities of financially distressed companies, perceiving them as highly risky and…

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The Art of Business Valuation

Many investors insist on affixing exact values to their investments, seeking precision in an imprecise world, but business value cannot be…

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Margin of Safety

Individual and institutional investors alike frequently demonstrate an inability to make long-term investment decisions based on business…

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