A Quote by Seth Klarman

The latest trade of a security creates a dangerous illusion that its market price approximates its true value. This mirage is especially dangerous during periods of market exuberance. The concept of "private market value" as an anchor to the proper valuation of a business can also be greatly skewed during ebullient times and should always be considered with a healthy degree of skepticism.

Seth Klarman

Quote Topics

Also Always Anchor Business Concept Considered Creates Dangerous Degree Exuberance Greatly Healthy Illusion Latest Market Mirage Periods Price Private Proper Security Should Skepticism Skewed Times Trade True True Value Valuation Value

Quote Author

Seth Klarman
American - Author
Born: May 21, 1957

The U. S. trade deficit with China shows that while we value the potential of their market, they value the reality of our market. It is in this area that we should use our leverage.

Adam Schiff

Market prices for stocks fluctuate at great amplitudes around intrinsic value but, over the long term, intrinsic value is virtually always reflected at some point in market price.

Warren Buffett

The extraction tax is based in part on production times the market value at the wellhead, so any downturn in the market price is going to be a mathematical impact on the shale tax. But beyond that, it also concerns me because it also impacts the health of the industry.

Tom Wolf

Value in relation to price, not price alone, must determine your investment decisions. If you look to Mr Market as a creator of investment opportunities (where price departs from underlying value), you have the makings of a value investor. If you insist on looking to Mr Market for investment guidance however, you are probably best advised to hire someone else to manage your money.

Seth Klarman

Clearly the price considered most likely by the market is the true current price: if the market judged otherwise, it would quote not this price, but another price higher or lower.

Louis Bachelier

Mr. Market does not always price stocks the way an appraiser or a private buyer would value a business. Instead, when stocks are going up, he happily pays more than their objective value; and, when they are going down, he is desperate to dump them for less than their true worth.

Benjamin Graham

Value investing doesn't always work. The market doesn't always agree with you. Over time, value is roughly the way the market prices stocks, but over the short term, which sometimes can be as long as two or three years, there are periods when it doesn't work. And that is a very good thing. The fact that our value approach doesn't work over periods of time is precisely the reason why it continues to work over the long term.

Joel Greenblatt

Fair Trade is a market-based, entrepreneurial response to business as usual: it helps third-word farmers developing direct market access as well as the organizational and management capacity to add value to their products and take them directly to the global market. Direct trade, a fair price, access to capital and local capacity-building, which are the core strategies of this model, have been successfully building farmers' incomes and self-reliance for more than 50 years.

Paul Rice

Market value is irrelevant to intrinsic value. ... Unqualified judgment can at most claim to decide the market-value - a value that can be in inverse proportion to the intrinsic value.

Arnold Schoenberg

In a rising market, everyone makes money and a value philosophy is unnecessary. But because there is no certain way to predict what the market will do, one must follow a value philosophy at all times.

Seth Klarman

I don't believe all this nonsense about market timing. Just buy good value and when the market is ready that value will be recognized.

Henry Earl Singleton

Remember that banks aren't markets. The market is amoral. The market doesn't care who you are. You're a trade to the market. The market will sell you if they think you're riskier.

Jamie Dimon

Basically my point of view on unicorns is that private companies which have sky high valuations, it doesn't really mean anything in the real world until it's marked to market. And there's only two ways things get marked to market in venture capital: Either a company is acquired by another company for cash or marketable security, or it goes public, and then it has reporting requirements and then the market will determine the value.

Kevin Kinsella

The stock market has gone up and if you are stock picking, that's fine, you may do a bit better than the market. But if you want to play in another game where you can get rapid increases of value and so on and so forth, this apparently has become the new parlour game, to invest in these companies and many their cases, the private equity that has been piling in onto of the venture capital is creating the unicorn, in other words the company with the $1 billion valuation.

Kevin Kinsella

Remember that banks aren't markets. The market is amoral. The market doesn't care who you are. You're a trade to the market. The market will sell you if they think you're riskier. Banks didn't do that

Jamie Dimon

In an efficient market, at any point in time, the actual price of a security will be a good estimate of its intrinsic value.