Search Results for: seth klarman

  • 19 Feb
    Seth Klarman & Monish Pabrai’s Portfolio Rebalancing Master Class

    Seth Klarman & Monish Pabrai’s Portfolio Rebalancing Master Class

    • Both Pabrai and Klarman have huge cash positions, but what’s interesting is that they both rebalance their positions in relation to the risk.



    Introduction

    Monish Pabrai and Seth Klarman are among the top value investors managing significant sums of money.

    Pabrai is a Buffett devotee. You can read more about him in our article here, or read his book The Dhando Investor: The Low Risk Method to High Returns.

    Klarman is the manager of the Baupost Group, a $30+ billion hedge fund. He’s also famous for his book The Margin of Safety. The book is a bit pricey, but you can read my series of articles about the book here. More →

  • 07 Jul
    What We Can Learn From Seth Klarman’s Current Portfolio

    What We Can Learn From Seth Klarman’s Current Portfolio

    • You might call them boring businesses, but with a bit of portfolio rebalancing and buying more on the dips, Klarman’s positions will probably deliver his required 20% return per year over the long term.
    • In the U.S., he is overweigh LNG, refineries, communications, and pharma.
    • A few investing lessons can be derived from his current portfolio.

    Introduction

    As much as I hate bureaucracy and filing required market regulator forms and various statistical Central Bank inquiries, I must say that I love when others do it as I can get a pretty tasty free lunch from it.

    You probably know that an institutional fund manager has to disclose their U.S. portfolio positions in a 13F form no longer than 45 days after the end of the quarter with some exceptions. For example, when the manager thinks that disclosure would significantly affect share price, they can postpone disclosing, but we can get a pretty good picture of the things a specific fund is doing. More →

  • 13 Jun
    Margin Of Safety – Seth Klarman’s 10 Rules For Investing Success

    Margin Of Safety – Seth Klarman’s 10 Rules For Investing Success

    • After summarizing Seth Klarman’s book, I thought added value could be created by listing his most important investing rules.
    • Some rules are easy to understand and apply, while some go against what the majority thinks. Think averaging down.
    • Klarman achieved returns of over 20% for more than 35 years. Therefore, it’s extremely important to learn and listen when he says something as he doesn’t speak much.

    Introduction

    We have completed the chapter by chapter summary of Seth Klarman’s book, Margin of Safety. Click here to view all of these articles on the Investiv Daily website.

    As I find Klarman’s investment style so powerful and yet so simple, I thought it would be a good idea to conclude the summary of his book with 10 of his investment rules. You may want to bookmark today’s article to compare future investment ideas and opportunities against Klarman’s view on investing. More →

  • 23 Jan
    On Seth Klarman & His <i>Margin of Safety</i>

    On Seth Klarman & His Margin of Safety

    • Understanding value is just the beginning of profitable investing.
    • Would you be able to hold, on average, 33% of your portfolio in cash with peaks above 50%?
    • Studying human behavior through history is what the best hedge fund managers do.

    Introduction

    Seth Klarman’s book Margin of Safety – Risk-Averse Value Investing Strategies for the Thoughtful Investor sells on Amazon (NASDAQ: AMZN) for $1,992.92 new, and $792.33 used. It’s priced that high because it is a collector’s item that was printed in a small run.

    I believe Klarman would agree that it’s better to invest in stocks than to pay that much for a book. I agree and didn’t want to wait for the book turn up at the library, but I finally managed to get a copy.

    I’ll analyze the book, see what is still relevant today as the book was published in 1991, and share Klarman’s insights with you in a series of articles. Before we start with the book, I’ll start with some insight on Seth Klarman, his investing technique, performance, and general view on investing. More →

  • 13 Mar
    This Might Be The Biggest Risk To The Stock Market

    This Might Be The Biggest Risk To The Stock Market

    • ETFs have grown extremely fast in the last 10 years.
    • This amplifies the risks of the stock market because, since when does the majority know what’s best?
    • There is one small example of what happens when things stop growing.



    Introduction

    I’ll close my series on the risks to the stock market by discussing a risk that few see where the prevailing wisdom in one of investing through passively managed mutual funds and ETFs. This is creating a big risk, even if it doesn’t look like that now. Let me elaborate on that. More →

  • 09 Nov
    Margin Of Safety – Is It A Method Or A Mindset?

    Margin Of Safety – Is It A Method Or A Mindset?

    • Many would like the formula for calculating intrinsic value and deriving a margin of safety.
    • I’ll discuss a few issues about the margin of safety that are mostly up to one’s personal preferences.
    • There are also some issues with a margin of safety. It’s not really free.



    Introduction

    I get lots of questions about how to properly value a company, what the best method is to determine intrinsic value, what clear buying signals look like, and especially a lot of questions on the best valuation metrics and financial indicators to use.

    I completely understand where these questions come from as it’s in our nature to simplify things and look for the magic formula that has all the answers, especially in an uncertain environment like financial markets are. However, investing and especially value investing, isn’t that easy. More →

  • 31 Oct
    Asking Yourself These 7 Questions Will Make You A Better Investor

    Asking Yourself These 7 Questions Will Make You A Better Investor

    • Today, we’ll look into Richard Thaler’s work to find out how to take advantage of behavioral finance.
    • Taking advantage goes hand-in-hand with not making behavioral mistakes.
    • A few examples and 7 questions will give you plenty of food for thought.



    Introduction

    The recent Nobel prize in economics was awarded to Richard Thaler from the Chicago Booth School of Business for exploring the biases and cognitive shortcuts that impact how people absorb and process information. More →

  • 11 Aug
    Is Value Investing Dead?

    Is Value Investing Dead?

    • The last 10 years have been terrible for value investors as it has seemed like fundamentals don’t matter at all anymore.
    • There are limited options to be a value investor as the Russell 1000 value index has a price to book ratio above 2.
    • I’ll discuss three options for what a value investor can do and the historical results of such approaches.

    Introduction

    If you’re a value investor or have been invested in a value fund, you probably aren’t the happiest investor in the world right now. More →

  • 25 Jul
    Is It Time To Invest In Natural Gas?

    Is It Time To Invest In Natural Gas?

    • There are many influences on natural gas in the short term, but the long term is pretty clear.
    • Despite the growth in demand, there is no supply gap expected, and thus cost and moats should be looked for in potential investments.
    • As the long-term trend is positive, it’s a good thing to buy when there is pessimism in the sector, which is usually for a relatively short period.

    Introduction

    I recently wrote an article on oil where I discussed the implications of and best timing to invest in oil. A commodity that is closely related to oil is natural gas. However, the long-term supply and demand trends are a bit different than those for oil which make natural gas an interesting long-term investment opportunity. More →

  • 20 Jul
    Sven’s List Of The Five Books Every Investor & Trader Should Read

    Sven’s List Of The Five Books Every Investor & Trader Should Read

    I love books on investing, and find them to be the best possible investment. For just a few bucks, you can get the synthesized knowledge of the most successful investors. On top of that, many also discuss their mistakes, which are an even more valuable source of learning.

    So with that, today I’ll the list the books on my list that I think every investor or trader should read alongside a short commentary. More →

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