Author Topic: Margin of Safety - Seth Klarman  (Read 25729 times)

boilermaker75

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Re: Margin of Safety - Seth Klarman
« Reply #40 on: July 10, 2018, 08:55:49 PM »
I have one of the crappy PDFs of this book. I think it's a good book, but not great. I would say it's overrated actually. Good for it's time, but there are better books available now. I think if it were easily available it wouldn't be thought of as highly as it is.

I'm not even sure you could consider it a very good book for its time.

Everything in Klarman's book - including the the title - was lifted straight from Benjamin Graham, who expressed the essence of value investing much earlier and more eloquently in The Intelligent Investor. There is little to be learned from Klarman if one has even a passing familiarity with Graham's work.

I read Margin of Safety several years ago, but that is my recollection. I didn't find anything new, or unique, in it.


rb

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Re: Margin of Safety - Seth Klarman
« Reply #41 on: July 10, 2018, 11:53:40 PM »
You know what, I'll echo what others said here. Screw Seth Klarman and his book. I have the book and I've read it. Anyone who paid $1,000 for it is insane and no investor in my book. Klarman is a much better investor than he is a writer. There's nothing in there that the median member on this board doesn't already know.... and membership on this board costs only 20 bucks. If you can get it for $15 sure go for it, but otherwise forget it. My guess is that Klarman doesn't want the book out there because he doesn't want people to read it and realize how bad it is.

A sizeable part of the book is about how efficient the market is, having respect for it and acting when you have an advantage over the market. Very academic stuff. But in my book, the market is like a wild beast so you have to have respect for it. However, as a value investor you have to be arrogant to a certain extent. You have to know the market is wrong and you are right. It doesn't work if you're constantly petrified by the market.

Instead of focusing on Klarman's crappy book I'd recommend reading "The Intelligent Investor" in conjunction with "Loosing My Virginity" and "Screw It, Let's Do It". You'll come much more ahead and save a bunch of money to boot.

stahleyp

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Re: Margin of Safety - Seth Klarman
« Reply #42 on: July 11, 2018, 04:53:03 AM »
I do wonder how good of an investor Klarman really is. He's averaged about 17% a year since inception I believe (which is great). However, he holds a substantial level of cash. I believe he trailed the S&P 500 from inception to 2000 (and made a killing after that). I'm confident to say he's probably trailed the last 5-10 years by a substantial margin too  (he's been bearish at least since 2010). I think it's been said that Klarman is one of three investors Buffett would allow to invest his money so that speaks volumes.
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DooDiligence

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Re: Margin of Safety - Seth Klarman
« Reply #43 on: July 11, 2018, 05:48:22 AM »
I think Howard Marks' treatment of "Margin of Safety" is wayyy more important.

Makes Klarman's book look amateurish.
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Spekulatius

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Re: Margin of Safety - Seth Klarman
« Reply #44 on: July 11, 2018, 08:29:12 AM »
I think Howard Marks' treatment of "Margin of Safety" is wayyy more important.

Makes Klarman's book look amateurish.
I found Howard Marks book unremarkable too. I know he is revered here, but I really didn‘t get much from his book, other than the idea to think about where we are in a cycle. Even with respect to the latter, it might just be better not to think about cycles at all and look at all Investments case by case and forget about the large picture.
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John Hjorth

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Re: Margin of Safety - Seth Klarman
« Reply #45 on: July 11, 2018, 01:44:39 PM »
I did ask Sanjeev to merge this topic with the topic in the General Discussion forum, which by Sanjeevs initiative took place about 1.5 hours ago. Thank you Sanjeev. [Just so that nobody is confused what has happened here on CoBF.]

I think Howard Marks' treatment of "Margin of Safety" is wayyy more important.

Makes Klarman's book look amateurish.
I found Howard Marks book unremarkable too. I know he is revered here, but I really didn‘t get much from his book, other than the idea to think about where we are in a cycle. Even with respect to the latter, it might just be better not to think about cycles at all and look at all Investments case by case and forget about the large picture.
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CorpRaider

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Re: Margin of Safety - Seth Klarman
« Reply #46 on: March 27, 2019, 07:04:57 AM »
I have one of the crappy PDFs of this book. I think it's a good book, but not great. I would say it's overrated actually. Good for it's time, but there are better books available now. I think if it were easily available it wouldn't be thought of as highly as it is.

I'm not even sure you could consider it a very good book for its time.

Everything in Klarman's book - including the the title - was lifted straight from Benjamin Graham, who expressed the essence of value investing much earlier and more eloquently in The Intelligent Investor. There is little to be learned from Klarman if one has even a passing familiarity with Graham's work.

I read Margin of Safety several years ago, but that is my recollection. I didn't find anything new, or unique, in it.

Reading it now.  Agree.  Also much of it is quite dated.  I definitely see why he hasn't republished the book.  The only real value I'm getting from it is a concrete example of why high priced, glamour stocks don't typically work out.  High prices and expectations leading to utter disappointment when met with merely average results.  haha.
« Last Edit: March 27, 2019, 07:11:50 AM by CorpRaider »

Saluki

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Re: Margin of Safety - Seth Klarman
« Reply #47 on: April 16, 2019, 10:43:50 AM »
I think it's well written because it can be easily understood by a lay person.  A lot of books on investing are full of jargon or written by people who are terrible at writing, so it stands out because it's not terrible--which is the norm.  It's a good book, but definitely not worth $1000+

I think I'm the only one on here who is not a fan of The Intelligent Investor.  Maybe I need an earlier version of the book but something about the writing style in that book (and Security Analysis) I find quite grating. 

Books I have liked and re-read from time to time

Peter Lynch: One up on Wall Street
Greenblatt: You Can be a Stock Market Genius (only the title is terrible, the rest is wonderful)
Phil FisherL Common Stocks, Uncommon Profits
Marks:  The Most Important Things
Pabrai: Mosaic (hard to find, and mostly reprints of articles, but I think better than his other book, which is also good)

and

Berkshire Letters to Shareholders 1965-2014, in hardcover, is not recommended enough. 
If it's important, do it every day. If it's not important, don't do it at all.  -Dan Gable