Seth Klarman on Value investing, Investment Strategies and Advice for Success
A interview with billionaire value investor Seth Klarman. In this interview Seth discuses what value investing means to him, principles of the Baupost group that have aided its success and the groups investment focus and strategy.
Interview Date: March 17, 2009
Event: Ivey Business School Video Conference
0:36 Seth’s Background
2:41 Explains value investing
12:03 What makes The Baupost Group successful
19:10 investing focus
32:55 Baupost group Culture
36:11 Start of questions
36:26 Why have value stocks done so poorly in relation to growth stocks during this recession as opposed to previous recessions?
40:48 What is your view on risk and return, and how they interact?
43:44 Can you share your thoughts on your largest holding, News Corp?
45:25 What are some positive aspects to perusing a career in value investing during this economic climate?
47:09 Do you use WACC/ROIC when valuing a company?
50:04 Which value investors do you admire?
52:00 Can you describe your worse case scenario for your forecast?
56:26 Where should we get experience when pursuing a career in value investing?
57:32 Why is value investing more focused in North America than internationally?
58:35 How would you explain your own investment strategy?
59:19 What process do you follow to minimize mistakes?
1:01:48 How do you decide when to sell something?
1:05:18 How do you communicate the level of risk to your investors and is there any formal policy?
1:08:55 What is the most important thing you have learned in life and investing in the last 25 years?