Seth Andrew Klarman (born May 21, 1957) is an American billionaire investor and hedge fund manager. He is the chief executive and portfolio manager of the Baupost Group, a Boston-based private investment partnership he founded in 1982, managing over $27 billion in assets. Klarman is known as one of the most successful value investors of his generation, achieving annualized returns...
"The hardest part of value investing is maintaining emotional discipline when the market is against you. Fear and greed are your biggest enemies."
Maintain emotional discipline when the market is against you.
Read Full Analysis →"Don't anchor to your purchase price. The market doesn't know or care what you paid. Evaluate holdings based on current facts, not historical cost."
Evaluate investments on current facts, not purchase price.
Read Full Analysis →"You must be intellectually honest with yourself. Admit when you're wrong. Learn from mistakes. Don't rationalize poor decisions."
Intellectual honesty and learning from errors are essential disciplines.
Read Full Analysis →Seth Klarman has 3 key principles on investment psychology. The most important one is "Emotional Discipline" — The hardest part of value investing is maintaining emotional discipline when the market is against you.
Seth Klarman applies investment psychology through several key principles including "Emotional Discipline" and "Avoid Anchoring Bias". These principles guide practical investment decisions and have been tested across decades of market cycles.
Seth Klarman's approach to investment psychology is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Seth Klarman provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
