Insights from Seth Klarman's 'Margin of Safety'

Following Insights I found from a comment by Moathunter on Gurufocus:

  1. It is perfectly acceptable to hold cash when no bargains can be found. Not to think of cash as a failing by the investor, but as a sign of good discipline in not finding cheapness within your sphere of understanding.
  2. Investing is a very risky activity and that risk should be examined first and foremost, prior to even considering returns. Risk erodes returns, so to assume greater returns involve greater risk is illogical, and
  3. Avoid over-researching a company- seeking perfect information is both futile and harmful to returns for a number of reasons.

More on Klarman

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s