Tips by Seth Klarman

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When excesses such as lax lending standards become widespread and persist for some time, people are lulled into a false sense of security, creating an...
Nowhere does it say that investors should strive to make every last dollar of potential profit; consideration of risk must never take a backseat to...
Risk is not inherent in an investment; it is always relative to the price paid. Uncertainty is not the same as risk. Indeed, when great uncertainty...
Do not trust financial market risk models. Reality is always too complex to be accurately modeled. Attention to risk must be a 24/7/365 obsession,...
Do not accept principal risk while investing short-term cash: the greedy effort to earn a few extra basis points of yield inevitably leads to the...
The latest trade of a security creates a dangerous illusion that its market price approximates its true value. This mirage is especially dangerous...
A broad and flexible investment approach is essential during a crisis. Opportunities can be vast, ephemeral, and dispersed through various sectors and...
You must buy on the way down. There is far more volume on the way down than on the way back up, and far less competition among buyers. It is almost...
Financial innovation can be highly dangerous, though almost no one will tell you this. New financial products are typically created for sunny days and...
Ratings agencies are highly conflicted, unimaginative dupes. They are blissfully unaware of adverse selection and moral hazard. Investors should never...
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