A Quote by 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 contrast to the speculators preoccupation with rapid gain, value investors demonstrate their risk aversion by striving to avoid loss.
You have a class of investors and you have a class of speculators. The speculators historically haven't been big enough to cause the investors to doubt the long-term vision of stock.
Value investors should completely exit a security by the time it reaches full value; owning overvalued securities is the realm of speculators.
Value investing is risk aversion.
Value investing is simple to understand but difficult to implement. Value investors are not supersophisticated analytical wizards who create and apply intricate computer models to find attractive opportunities or assess underlying value. The hard part is discipline, patience, and judgment. Investors need discipline to avoid the many unattractive pitches that are thrown, patience to wait for the right pitch, and judgment to know when it is time to swing.
If we could be freed from our aversion to loss, our whole outlook on risk would change.
At the first rumors of war, timid investors in various government stock, being panic-stricken, sell out, to their loss and the gamblers' gain.
If we can embrace the adventure and risk and equip our churches to lay down their lives and abandon their inherent loss-aversion, who knows what innovation, what freshness, what new insights from the Spirit will emerge.
Evolutionary psychologists suggest that humans experienced evolutionary benefits from brain developments that included aversion to loss and risk and from instincts for cooperation that helped strengthen communities.
In the financial markets, however, the connection between a marketable security and the underlying business is not as clear-cut. For investors in a marketable security the gain or loss associated with the various outcomes is not totally inherent in the underlying business; it also depends on the price paid, which is established by the marketplace. The view that risk is dependent on both the nature of investments and on their market price is very different from that described by beta.
A rapid rendering of a landscape represents only one moment of its existence. I prefer, by insisting upon its essential character, to risk losing charm in order to gain greater stability.
Our world was created with a sense of order. For every loss, there is a gain. Sometimes we are so blinded by the loss that we don't see the gain, don't recognize the gift.
As there is no worldly gain without some loss, so there is no worldly loss without some gain.... Set the allowance against the loss, and thou shalt find no loss great.
Calculating people are contemptable. The reason for this is that calculation deals with loss and gain, and the loss and gain mind never stops. Death is considered loss and life is considered gain. Thus, death is something that such a person does not care for, and he is contemptable. Furthermore, scholars and their like are men who with wit and speech hide their own true cowardice and greed. People often misjudge this.
I'm quite amused by the attempt to excuse not trying harder, by claiming that perfect is not possible; it may not be, but striving toward it as an ideal is! It is in the act of 'striving' that we demonstrate character, courage, and conscience.
Targeting investment returns leads investors to focus on potential upside rather on downside risk ... rather than targeting a desired rate of return, even an eminently reasonable one, investors should target risk.
While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.
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