Tuesday, January 12, 2021

Seth Klarman: How To Achieve A 20% Return Per Year (10 Investing Rules)

 Here is the link. 

Seth Klarman is an investor who follows Warren Buffett & has achieved a 20% return since he started his fund. Here are 10 investing rules that Klarmin has followed to achieve this return...

  • Remain calm and look at the fundamentals
  • Buy below intrinsic value
Watch out for fees -
Pick stocks - avoid paying fees

He simply valued the business and bought a piece of it at a sizable discount. 

Stock discount - intrinsic value 

Rule 4: Don't just invest in value, try to find it at a bargain price 

Panic - Do not know the true value -> discount - buy more of stocks - get cheaper - fundamental not change

Buy a stock at a bargain price! Below intrinsic values 

Rule 5: Be patient. Opportunities will come to those who look for them

Rule 6: The market is inefficient 

Facebook last year -> July 15 2019 - privacy issue -> 203 / share -> 120/ share 

The stock market is not efficient (There are plenty of opportunities) 

Rule 7: Always have enough liquidity 

Rule 9: Trade and rebalance your portfolio 

Rule 10: Know what you're doing 

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