It sounds kind of crazy, but in times of turmoil in the market, I've felt a sort of serenity in knowing that I've checked and re-checked my work, one plus one still equals two regardless of where a stock trades right after I buy it.
Interpretation
Amid market chaos, confidence comes from thorough preparation and the consistent principles of logic and mathematics.
Seth Klarman reflects on the comfort that comes from diligent work and the immutable truths in life, such as mathematical accuracy, even when faced with the unpredictability of the stock market. This quote emphasizes the importance of preparation and conviction in one’s own abilities amid external chaos and uncertainty.
In practice
During a financial seminar, sharing this quote can highlight the importance of being thorough in one's financial decisions.
If you are predisposed to be patient, disciplined and psychologically appreciate the idea of buying bargains, then you're likely to be good at it. If you have a need for action, if you want to be involved in the new and exciting technological breakthroughs of our time, that's great, but you're not a value investor, and you shouldn't be one.
Value investing is simple to understand but difficult to implement. Value investors are not supersophisticated analytical wizards who create and apply intricate computer models to find attractive opportunities or assess underlying value. The hard part is discipline, patience, and judgment. Investors need discipline to avoid the many unattractive pitches that are thrown, patience to wait for the right pitch, and judgment to know when it is time to swing.
Investing is the intersection of economics and psychology.
While some might mistakenly consider value investing a mechanical tool for identifying bargains, it is actually a comprehensive investment philosophy that emphasizes the need to perform in-depth fundamental analysis, pursue long-term investment results, limit risk, and resist crowd psychology.
Value investing is risk aversion.
Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.
He wanted the songs, the stories, to save everybody.
Bone by bone, hair by hair, Wild Woman comes back. Through night dreams, through events half understood and half remembered.
All the business of war, and indeed all the business of life, is to endeavour to find out what you don't know by what you do; that's what I called 'guess what was at the other side of the hill'.
When your rage is choking you, it is best to say nothing.
You are never more essentially, more deeply, yourself than when you are still.
The world more often rewards the appearances of merit than merit itself.
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