Seth Klarman’s approach to investing

Today, I will share an interview with Seth Klarman, Baupost Group. In this Seth Klarman discussed his approach to investing across a range of interesting questions put forth by Jason Zweig.

I enjoyed reading this interview. In fact I re-read it because there is a lot to learn from this interview.

 

Who is Seth Klarman?

Seth Klarman heads Baupost Group. They have a humongous $26 billion under management.

He is known for writing the book Margin of Safety, Risk-Averse Value Investing Strategies for the Thoughtful Investor. The book is out of print. If you are interested in buying a used copy, it will cost you $680 only. Yes, you read that right.

Most people I know have downloaded a soft copy or ebook version. Not that it is legal. But $680 is a pretty high amount that can change your behaviour.

This is what Forbes says about Seth Klarman,

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. In the 10 years ending Dec. 31, 2008, he beat the market by an impressive 14.5% a year. Those returns are net of all hedge fund fees and include only one losing year.

Even more impressive is that Klarman achieved this record with no leverage and minimal amounts of shorts, often while holding significant amounts of cash approaching nearly half of all funds under management.

You can read about a piece that The Economist did on Seth Klarman.

 

Who is Jason Zweig?

Jason Zweig conducted the Seth Klarman interview. He is a heavyweight in his own arena. Today, we know him as the personal finance and investing columnist for Wall Street Journal. But he has been covering business, finance and investing since 1986.

You should read his articles if you have not read them before.

He was editor of the updated edition of the Benjamin Graham classic, “The Intelligent Investor“.

He is also author of Your Money and Your Brain – How the New Science of Neuroeconomics Can Help Make You Rich

 

Jason Zweig interviews Seth Klarman

 

Download the CFA presentation by Seth Klarman.

 

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Comments

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