Today I will share an interview with Seth Klarman, the famous fund manager at Baupost Group. I had written about him earlier in the article Seth Klarman’s approach to investing.
To remind you of what I wrote in the earlier article, from 1983 to 2008, his hedge fund, the Baupost Group, returned 16.5% a year, outperforming the S&P 500 by more than 6% a year. Now, that is something!
This interview dates back to 1991. He talks about markets, investing process and live examples of investments. A big section of the interview deals specifically with distressed debt investments. At an individual level it might not be possible to venture into such investments. This area is better suited to institutional investors. Nevertheless, this is the author of “Margin of Safety” and his approach to investing is worth learning from even if you cannot make such investments. You can apply the principle of margin of safety in equity investments too and you should indeed!
You can download the interview at this link.