C&B Notes

An Interview with Seth Klarman and Charlie Rose

As part of the Facing History and Ourselves New York Benefit Dinner, Charlie Rose interviewed Seth Klarman at Chelsea Piers.  As usual, Klarman had interesting things to say:

“Value investors have to be patient and disciplined, but what I really think is you need not to be greedy — if you’re greedy and you leverage, you blow up.  Almost every financial blow-up is because of leverage.  And then you need to balance arrogance and humility.”

“When you buy anything, it’s an arrogant act.  You’re saying: The markets are gyrating and somebody wants to sell this to me, and I know more than everyone else so I’m gonna stand here and buy it.  I’m gonna pay 1/8 more than the next guy wants to pay and buy it.  That’s arrogant.  And you need the humility to say: But I might be wrong.  And you have to do that on everything.”

>> Click here for the full interview on Vimeo