So I just read Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor and I am not that impressed. I did think that Seth had some good points but I am not sure why it is selling for $1,000. Seems to me to be pretty basic. Anyone else read this book?
Did you read the actual book or just a scan? My understanding is that it isn’t in print any more, that’s why it’s so expensive. In terms of content, I really enjoyed it but it’s quite philisophical and qualitative and he does basically punt on valuation.
Yes the actual book.
I would recommend the CFA level 1 economics materials b/c you still haven’t learned the paradox of value. Why are diamonds expensive and water is cheap, yet water is much more useful. Same thing going on here.
I thought the book was very thoughtful and an intelligent read. Especially the junk bond section, very investigative and very relevant to our current financial debacle. Not a value investor?
I am definitely a value investor but I just thought that Seth would have gone into more detail on valuation. Dont get me wrong I enjoyed the read just thought it was going to be more. I guess my expectations were too high.
What are Klarman’s returns looking like this year?
I know someone there. They’re down YTD, but less than 10%. A year or wo back they had large cash holdings, and went big into CDS of housing companies. They still have a fair bit of cash. So, while they’re down, they’re in pretty good shape, all things considered.
That sounds about right. Baupost is famous for keeping large amounts of cash on hand. What I can’t believe is how many “value” investment shops got hammered for being heavily invested in building/housing securities. I don’t know if anyone here knows Ron Muhlenkamp, but his fund is down for the same reason. These are supposed to be long term value minded investors. How could they not see that this was a huge bubble?
I read the book. Nothing special if you have already read Ben Graham.
I have a scan…is Kinko’s gonna get all legal on me if I have them print and bind it? The sucker’s 250 pages.
busprof Wrote: ------------------------------------------------------- > I know someone there. They’re down YTD, but less > than 10%. A year or two back they had large cash > holdings, and went big into CDS of housing > companies. They still have a fair bit of cash. > So, while they’re down, they’re in pretty good > shape, all things considered. A clarification - I meant to say that they were long on those housing firms’ CDS - so they made out very well.
Busprof - Any idea what the culture of Baupost is like? Always wondered what it would be like to work there given the reputation of its president/ceo.