Tuesday, January 12, 2021

Sven carlin: Margin of Safety - Seth Klarman's 10 Rules for Investing Success

 Here is the link. 

Seth Klarman from the Baupost group, made 20% per year over the past 35 years using a value investing strategy, a person I would listen to. Top 10 rules and investment strategies plus advice for success from his book Margin of safety: 1:38 Invest, don't speculate 3.29 Don't pay fees to Wall Street 4:20 Where are the customers' yachts? 4:52 Value investing is the best 6:56 Buy at bargain prices 7:38 Be patient, opportunities will come 8:42 Believe the market is inefficient 9:26 Always have a cash cushion 10:24 Don't be afraid to average down 12:43 Trade to rebalance 13:17 Know what you are doing

Success long term speculator - long term - it is hard to be a successor -
Fees - 1%
Book value, intrinsic value - buy at the cheapest as possible - margin of safety - always tangible asset - give me some protection - not to lose money
Apple stock - stock price vs book value - no marginal safety - Seth Klarman did not buy Apple stock
Gold stock - 1.3 billion -

Rule 4: Buy at bargain prices
Rule 5: Be patient, opportunities will come - there is a real bargain, buy $1.00 dollar for 50 cents, upside is huge; if it goes back to normal, 100%
Crisis, people be panic, buy at that time
Believe - believe market is not efficient - all information will be calculated in the price - overvalue - very under value - value investor

Rule 6: Always have a cash cushion - enough liquidity - no need to sell your stocks,
Seth 30 billion asset, 25% in cash; if some one withdraw, or anything on sale
Rule 8: Don't be afraid to average down - even lower, do not be afraid to average down
Good business, 10 year from now, 20 years from now, buy more when stock prices go down
People will be panic -

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