MUST WATCH: Charlie Rose interviews Seth Klarman, CEO of Baupost Group, about his legendary investment book of "Margin of Safety" and the essentials of Value Investing.
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Charlie Rose interviews Seth Klarman
Facing History and Ourselves New York Benefit Dinner.
November 11, 2011. Chelsea Piers, NYC.
Klarman is known as a value investor and is currently the chief executive and portfolio manager of the Baupost Group, a Boston-based private investment partnership.
He closely follows the investment philosophy of Benjamin Graham and is known for buying unpopular assets while they are undervalued, seeking a margin of safety and profiting off of their rise in price. Since his fund's $27 million-dollar inception to 2008 he has realized a 20 percent compound return-on-investment and as of 2016 manages $31 billion in assets.
- Value investing or Contrarian Gene.
- Investing is the intersection of economics and psychology.
- Investing is an exercise of humility.
- Value investors must be patient and disciplined.
- Warren Buffett Stages of Investing:
1.Buying cigar buds and getting the last few puffs for free.
2.Buying good companies at great prices.
3.Buying great companies at so so prices.
4.Buying weird securities from crappy businesses at better than market prices. Klarman indicated that Buffett’s recent purchase of Bank of America special preferred stock might be an example of this.
- “I think Buffett is a better investor than me, because he has a better eye for great businesses.”
- Good management adds value.