Seth Klarman Quotes

Who is Seth Klarman?

Seth Andrew Klarman is an American billionaire investor, hedge fund manager, and author.

Klarman is known as the "Oracle of Boston", a nod to fellow investor Warren Buffett who is often called the "Oracle of Omaha".

Born May 21, 1957

Books by Seth Klarman


Best 73 Quotes by Seth Klarman | Page 1 of 3

“A margin of safety is achieved when securities are purchased at prices sufficiently below underlying value to allow for human error, bad luck, or extreme volatility in a complex, unpredictable and rapidly changing world.”

Seth Klarman

“A simple rule applies: if you don't quickly comprehend what a company is doing, then management probably doesn't either.”

Seth Klarman

“A value strategy is of little use to the impatient investor since it usually takes time to pay off.”

Seth Klarman

“All an investor can do is follow a consistently disciplined and rigorous approach; over time the returns will come.”

Seth Klarman

“Almost every financial blow up is because of leverage.”

Seth Klarman

“Analysts 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 Klarman

“As Graham, Dodd and Buffett have all said, you should always remember that you don't have to swing at every pitch. You can wait for opportunities that fit your criteria and if you don't find them, patiently wait. Deciding not to act is still a decision.”

Seth Klarman

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“Avoiding where others go wrong is an important step in achieving investment success.”

Seth Klarman

“Beating the market has never been our objective. Rather, we have consistently tried not to lose money and, in doing so, have not only protected on the downside but also outperformed on the upside.”

Seth Klarman

“Because investors are not usually penalized for adhering to conventional practices, doing so is the less professionally risky strategy, even though it virtually guarantees against superior performance.”

Seth Klarman

“By investing at a discount, Benjamin Graham knew that he was unlikely to experience losses.”

Seth Klarman

“Deciding not to act is still a decision.”

Seth Klarman

“Distancing yourself from the crowd is an essential component of long-term investment success.”

Seth Klarman

“Generally, the greater the stigma or revulsion, the better the bargain.”

Seth Klarman

Products by Seth Klarman

“Gold is unique because it has the age-old aspect of being viewed as a store of value. Nevertheless, it's still a commodity and has no tangible value, and so I would say that gold is a speculation. But because of my fear about the potential debasing of paper money and about paper money not being a store of value, I want some exposure to gold.”

Seth Klarman

“Having great clients is the key to investment success.”

Seth Klarman

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“Michael Marcus taught me one thing that was incredibly important. He taught me that you could make a million dollars. He showed me that if you applied yourself, great things could happen. It is very easy to miss the point that you really can do it.”


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“Here's how to know if you have the makeup to be an investor. How would you handle the following situation? Let's 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 you're an investor. If you don't, you're not an investor, you're a speculator, and you shouldn't be in the stock market in the first place.”

Seth Klarman

“I find value investing to be a stimulating, intellectually challenging, ever changing, and financially rewarding discipline.”

Seth Klarman

“I know of no long-time practitioner who regrets adhering to a value philosophy; few investors who embrace the fundamental principles ever abandon this investment approach for another.”

Seth Klarman

“If you are predisposed to be patient, disciplined and psychologically appreciate the idea of buying bargains, then you're likely to be good at it. If you have a need for action, if you want to be involved in the new and exciting technological breakthroughs of our time, that's great, but you're not a value investor, and you shouldn't be one.”

Seth Klarman

“If you can remember that stocks aren't pieces of paper that gyrate all the time – they are fractional interests in businesses – it all makes sense.”

Seth Klarman

“In a world in which most investors appear interested in figuring out how to make money every second and chase the idea du jour, there's also something validating about the message that it's okay to do nothing and wait for opportunities to present themselves or to pay off. That's lonely and contrary a lot of the time, but reminding yourself that that's what it takes is quite helpful.”

Seth Klarman

“In contrast to the speculators preoccupation with rapid gain, value investors demonstrate their risk aversion by striving to avoid loss.”

Seth Klarman

“In reality, no one knows what the market will do; trying to predict it is a waste of time, and investing based upon that prediction is a speculative undertaking.”

Seth Klarman

“Investing is the intersection of economics and psychology.”

Seth Klarman

“Investing today may well be harder than it has been at any time in our three decades of existence.”

Seth Klarman

“Investment success cannot be captured in a mathematical equation or a computer program.”

Seth Klarman

“Investors should always keep in mind that the most important metric is not the returns achieved but the returns weighed against the risks incurred.”

Seth Klarman

Products by Seth Klarman

“It sounds kind of crazy, but in times of turmoil in the market, I've felt a sort of serenity in knowing that I've checked and re-checked my work, one plus one still equals two regardless of where a stock trades right after I buy it.”

Seth Klarman

“It turns out that value investing is something that is in your blood. There are people who just don't have the patience and discipline to do it, and there are people who do. So it leads me to think it's genetic.”

Seth Klarman

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“In a bear market, you have to use sharp countertrend rallies to sell.”


More quotes by Bruce Kovner