As Buffett has often observed, value investing is not a concept that can be learned and gradually applied … - Seth Klarman

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Quote of the day

Death is a release from the impressions of the senses, and from desires that make us their puppets, and from the vagaries of the mind, and from the hard service of the flesh.

Seth Klarman

As Buffett has often observed, value investing is not a concept that can be learned and gradually applied over time. It is either absorbed and adopted at once, or it is never truly learned.

Absorbed, Adopted, Applied, Buffett, Investing, Time

Same Author Quotes

Selling, in particular, can be a challenge; many investors are tempted to become more optimistic when a security is performing well. This temptation must be resisted; tax considerations aside, when a security reaches full valuation, there is no longer a reason to own it.

Become, Challenges, Optimistic, Reason, Temptation

Value in relation to price, not price alone, must determine your investment decisions. If you look to Mr Market as a creator of investment opportunities (where price departs from underlying value), you have the makings of a value investor. If you insist on looking to Mr Market for investment guidance however, you are probably best advised to hire someone else to manage your money.

Alone, Decision, Hire, Looks, Makings, Opportunity

The inability to hold cash and the pressure to be fully invested at all times meant that when the plug was pulled out of the tub, all boats dropped as the water rushed down the drain.

Cash, Drain, Inability, Plug, Times, Water

When excesses such as lax lending standards become widespread and persist for some time, people are lulled into a false sense of security, creating an even more dangerous situation. In some cases, excesses migrate beyond regional or national borders, raising the ante for investors and governments. These excesses will eventually end, triggering a crisis at least in proportion to the degree of the excesses. Correlations between asset classes may be surprisingly high when leverage rapidly unwinds.

Class, Correlations, Creating, Dangerous Situations, Lax

Be sure that you are well compensated for illiquidity - especially illiquidity without control - because it can create particularly high opportunity costs.

Compensated, Cost, Costs, Opportunity, Wells