Thread by @ms89_meet

Top 50 short quotes by Seth Klarman:

(A Mega Thread)

We are big fans of fear, and in investing it is clearly better to be scared than sorry.

Be focused on process and not outcome.

We don't deal in absolutes. We deal in probabilities.

We worry top-down, but we invest bottom-up.

A value strategy is of little use to the impatient investor since it usually takes time to pay off.

Never stop reading. History doesn't repeat, but it does rhyme.

Do not suffer interim losses, relish and appreciate them.

Complexity - limits competition.

The avoidance of loss is the surest way to ensure a profitable outcome.

Almost every financial blow up is because of leverage.

Hold cash when opportunities are not presenting themselves.

Investment success cannot be captured in a mathematical equation or a computer program.

Limit risk with: Deep analysis Bargain purchase Sensitivity analysis.

When people give away stocks based on forced selling or fear that is usually a great opportunity.

Value investing is risk aversion.

We buy expecting to hold a bond to maturity and a stock forever.

Investing today may well be harder than it has been at any time in our three decades of existence.

The best protection against risk is knowing what you are doing.

One must understand the importance of an endless drive to get information and seek value.

All investors must come to terms with the relentless continuity of the investment process.

Sometimes buying early on the way down looks like being wrong, but it isn't.

Costs and liabilities are rarely overstated.

There are no long-term lessons - ever.

When a Wall Street analyst or broker expresses optimism, investors must take it with a grain of salt.

Value investing is predicated on the efficient market hypothesis being wrong.

Depressions aren't good but the depression mentality is good.

Always look for forced urgent selling.

Be indifferent if you lose your short term clients, remember they are your own worst enemy.

I don't have a Bloomberg on my desk. I don't care.

Like to have a catalyst - reduces dependence on the market: Distressed debt inherently has a catalyst - maturity.

By investing at a discount, Benjamin Graham knew that he was unlikely to experience losses.

The real secret to investing is that there is no secret to investing.

Once you adopt a value-investment strategy, any other investment behavior starts to seem like gambling.

Great investments don't just knock on the door and say "buy me".

Buying's easier, selling's hard - hard to know when to get out.

It's incredibly important to note that when you don't allow failure, you get more failure.

I find value investing to be a stimulating, intellectually challenging, ever changing, and financially rewarding discipline.

Courage is a function of process.

Value investing by its very nature is contrarian.

Having clients with a long-term orientation is crucial. Nothing else is as important to the success of an investment firm.

If you've just stared into the abyss, quickly forget it: the lessons of history can only hold you back.

Short sellers age in dog years.

Most institutional investors feel compelled to swing at almost every pitch and forgo batting selectivity for frequency.

You need humility to say 'I might be wrong.'

When a government official says a problem has been "contained," pay no attention.

Avoid organizing investment team into silos.

Having great clients is the key to investment success.

There is no amount of bad news that the markets cannot see past.

Generally, the greater the stigma or revulsion, the better the bargain.

We work really hard never to get confused with what we know from what we think or hope or wish.