Seth Klarman is a legendary value investor with some $25B in assets under management at his Baupost Group. In 1991 he released a book called “Margin of Safety – Risk Averse Value Investing Strategies for the Thoughtful Investor” which has become something of a must-read among sophisticated investors. Unfortunately, it is out of print, and a physical copy cost $2,000 to get from Amazon. One can only speculate of WHY Mr. Klarman decided not to make a second edition, there’s clearly demand for it these days. Is it because he’s already wealthy enough so he just doesn’t care? Is it because he offended some group of people that doesn’t like being offended? Or is it because he thought that maybe he revealed a little too much of his investing secrets? I don’t know. But I had to get a copy myself, in order to bring you guys this top 5 takeaways summary. Let’s dive in!
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Timestamps for Margin of Safety:
00:00 Intro
01:08 What’s the Difference Between a Value Investor & a Speculator?
04:00 Investment Risk – A Terribly Misunderstood Concept
06:48 Three Methods of Valuing a Stock
10:15 To Hold, or Not to Hold … Cash
13:01 Apply the 80/20 Approach
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