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Jason Zweig Interview with Seth Klarman: Strongly Recommended

Posted by Larry Doyle on September 25, 2010 10:22 AM |

Patience is a virtue.

Wall Street is neither a patient place, nor a patient industry. Our nation is now paying a very steep price for the perpetual short term mentality that continues to dominate our financial system and permeate our nation.

I strongly believe we need to shirk those who make different recommendations every other day. We need to embrace those who have a more macro view of the world and our markets and the insights to navigate accordingly. While many may profess to have these skills and perspectives, very few distinguish themselves like The Baupost Group’s Seth Klarman.

I first introduced Seth Klarman to readers of Sense on Cents this past May when I wrote The Best Sense on Cents: STRONGLY RECOMMENDED. Embedded in that commentary are highlights from an interview with Seth Klarman by The Wall Street Journal’s Jason Zweig. The full interview came across my desk this week and is so good that I am compelled to share it. If you care about your personal finances and have an interest in our markets and our economy, do yourself the favor and take the short time to savor this interview. Zweig takes us where very few journalists could even entertain going. Share this with friends and colleagues. They will thank you.

Click on image to access a pdf document of the full interview:

Larry Doyle

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I have no affiliation or business interest with any entity referenced in this commentary. As President of Greenwich Investment Management, an SEC regulated privately held registered investment adviser, I am merely a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • sharpshorts

    Your “Seth_Klarman_Interview_-_Financial_Analyst_Journal.pdf” link is broken, as is your “The Best Sense on Cents: STRONGLY RECOMMENDED”.

  • LD

    Thanks for pointing that out. I guess you could say, “You can dress him up but you can’t take him out!!”

  • coe

    “Intellectual honesty” and “ideational fluency” – Klarman has this right on the button – seems that part of the Wall St troubles is that the leaders possess too little of the former and too much of the latter…perhaps flip that around when thinking of the regulators…and it’s difficult to find a trace of either on the political rubber chicken circuit. My generation was raised conservatively, and one of the many pet phrases that framed our upbringing was that “patience is a virtue” – not exactly a much followed beacon of light for the instant gratification needs of this generation at this time…value investing – hmmm…is there any investment better than or more important to our economic and cultural futures than that of investing in our children? Another reason to be wary of ballooning deficits and a very badly flawed school system…thinking I might listen to one of your old radio shows stored on my ipod, LD,…just for the nostalgia! No…have too many things that need immediate attention – so much for patience…

  • fred

    LD,

    There is more than one road that leads to Oz. Many different investment strategies can make you money, ie. the most common being buy and hold “value” LT or be market long in an a uptrend.

    The biggest mistake investors make is to listen to the recommendation of others and act upon them without doing any homework.

    1)Either let someone else, (highly qualified on a LT basis), mgt your money and monitor their performance periodically or 2) make the committment to do your own homework.

    The most common problems most people make who act on the recommendation of other are…

    1) their time horizon is different, and 2) their risk tolerance is inconsistent.

    Even highly qualified people making recommendations are usually just “talking their book” so the difference between a good and bad investment always comes down to the price you paid and when you paid it rather than what you bought.

    If you decide to do it yourself, you must have the discipline, knowledge, and patience required to make a proven strategy perform as expected over time, this usually involves ignoring the recommedations of others.






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