Seth Klarman’s Books: Recommended Reading List

Klarman himself has written one of the most coveted books on value investing, Margin of Safety. The book is out of print,is one of the most stolen books from libraries, and sells for thousands of dollars online.

Baupost Group Seth Klarman

Seth Klarman is virtually unknown outside value circles, despite his impressive record and value of assets under
management. On average, Klarman’s hedge fund, Baupost has returned 19% p.a. despite holding a large portion of its assets in cash. During the financial crisis, Seth Klarman’s funds lost somewhere between 7% and 13%, certainly outperforming the majority of its hedge fund peer group.

Klarman is a traditional value investor, looking for companies, bonds, credit instruments and real estate opportunities that all trade below what he, and his analysts believe is intrinsic value. However, a margin of safety must be incorporated. Seth Klarman it seems will never chase a stock just because it’s the stock of the moment.

According to a lecture given by Bruce Greenwald: “Warren Buffett says that when he retires, there are three people he would like to manage his money. First is Seth Klarman of the Baupost Group, who you will hear from later in the course. Next is Greg Alexander. The third is Li Lu.”

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For more on Seth Klarman, head over to ValueWalk’s Seth Klarman Resource Page, where you can find a detailed rundown of his background, bio, and investment philosophy.

Seth Klarman: Authored books

Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor by Seth A. Klarman

Security Analysis: Sixth Edition, Foreword by Warren Buffett, Commentary by Seth A. Klarman

Seth Klarman: Recommended books

The Intelligent Investor

Benjamin Graham. No description needed here really.

You Can Be A Stock Market Genius

Joel Greenblatt. Greenblatt's book examines catalyst-based investing such as spin-offs, mergers, risk arbitrage, etc. to exploit market inefficiencies.

The Aggressive Conservative Investor.

Martin Whitman. A great guide for learning how to analyze and evaluate stocks.

Book Recommendations by Seth Klarman at the CFA Institute Annual Conference

  1. The Intelligent Investor
  2. You Can Be A Stock Market Genius
  3. The Aggressive Conservative Investor
  4. The Forgotten Depression: 1921: The Crash That Cured Itself
  5. Mr. Market Miscalculates: The Bubble Years and Beyond
  6. The Trouble With Prosperity: A Contrarian’s Tale of Boom, Bust, and Speculation
  7. Money of the Mind: Borrowing and Lending in America from the Civil War to Michael Milken
  8. John Adams: Party of One
  9. Minding Mr. Market: Ten Years on Wall Street With Grant’s Interest Rate Observer
  10. Bernard M. Baruch: The Adventures of a Wall Street Legend
  11. Mr. Speaker!: The Life and Times of Thomas B. Reed The Man Who Broke the Filibuster
  12. When Genius Failed: The Rise and Fall of Long-Term Capital Management
  13. Buffett: The Making of an American Capitalist
  14. America’s Bank: The Epic Struggle to Create the Federal Reserve
  15. The End of Wall Street
  16. Origins of the Crash: The Great Bubble and Its Undoing
  17. While America Aged: How Pension Debts Ruined General Motors, Stopped the NYC Subways, Bankrupted San Diego, and Loom as the Next Financial Crisis
  18. Moneyball: The Art of Winning an Unfair Game
  19. The Fifth Risk
  20. Liar’s Poker
  21. The Money Culture
  22. The Undoing Project: A Friendship That Changed Our Minds
  23. The Big Short: Inside the Doomsday Machine
  24. Flash Boys: A Wall Street Revolt
  25. Boomerang: Travels in the New Third World
  26. The Blind Side: Evolution of a Game
  27. Panic: The Story of Modern Financial Insanity
  28. Losers
  29. The Real Price of Everything: Rediscovering the Six Classics of Economics
  30. Too Big to Fail: Inside the Battle to Save Wall Street

Anything by Jim Grant:

Anything by Roger Lowenstein:

Moneyball: The Art of Winning an Unfair Game

Michael Lewis' classic. Another Michael Lewis book, The Big Short has also been recommended.

Too Big to Fail

Andrew Ross Sorkin's book about the financial crisis.