📖Seth Klarman
Patience as Competitive Edge
Long-term patience is a massive competitive advantage.
In a world of short-term traders, the long-term investor has a massive advantage. Patience allows you to wait for truly great opportunities.
🏠 Everyday Analogy
📖 Core Interpretation
Seth Klarman frames investing as a compounding game. Time amplifies quality and discipline, while unnecessary activity often destroys long-horizon returns.
💎 Key Insight：Most investors can't wait; those who can are rewarded.
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❓ Why It Matters
Short-term noise often forces investors out before value is realized. Long-term discipline increases the odds that fundamentals, not emotions, drive outcomes.
🎯 How to Practice
Extend research and review horizon, reduce unnecessary turnover, and adjust only when intrinsic value, risk, or opportunity cost materially changes.
⚠️ Common Pitfalls
Calling it long term while never reviewing thesis
Overtrading and damaging compounding
Ignoring opportunity cost and alternatives
📚 Case Studies
1
Washington Post Deep Value Buy (1974)
The Washington Post traded at a deep discount to asset value amid market pessimism and regulatory fears, offering a large margin of safety for patient value investors.
✨ Outcome：Investors who bought at distressed prices realized extraordinary long-term returns as earnings grew and sentiment normalized.
2
Junk Bond Distress Opportunity (1989)
After the collapse of the 1980s leveraged buyout boom, many high-yield bonds sold at steep discounts, reflecting panic rather than underlying asset and recovery values.
✨ Outcome：Value investors purchasing carefully analyzed issues enjoyed strong total returns as defaults were lower than feared and prices rebounded.
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