Did we ever mention that investing is hard work — painstaking, relentless, and at times confounding?
Q1 hedge fund letters, conference, scoops etc
Separating relevant signal from noise can be especially difficult. Endless patience, great discipline, and steely resolve are required. Nothing you do will guarantee success, though you can tilt the odds significantly in your favor by having the right philosophy, mindset, process, team, clients, and culture. Getting those six things right is just about everything.
Complicating matters further, a successful investor must possess a number of seemingly contradictory qualities. These include the arrogance to act, and act decisively, and the humility to know that you could be wrong. The acuity, flexibility, and willingness to change your mind when you realize you are wrong, and the stubbornness to refuse to do so when you remain justifiably confident in your thesis. The conviction to concentrate your portfolio in your very best ideas, and the common sense to nevertheless diversify your holdings. A healthy skepticism, but not blind contrarianism.
A deep respect for the lessons of history balanced by the knowledge that things regularly happen that have never before occurred. And, finally, the integrity to admit mistakes, the fortitude to risk making more of them, and the intellectual honesty not to confuse luck with skill.
As Klarman puts it, “You don’t become a value investor for the group hugs.”
Why does Klarman prefer the Value Investing?
It’s always hard to know why the market does what it does. That’s part of the ever-interesting challenge we face in traversing the twists and turns of fluctuating prices and evolving fundamentals. On any given day, the sheer number of players, behaviors, economic factors, and business developments defy anyone’s ability to fully grasp what is going on and why. That’s why we develop and follow a game plan that does not purport to tell us what to do moment by moment, but rather is intended to help us successfully navigate the most challenging tumult. This is the essence of value investing.
Are You ready to tilt the odds significantly in your favour by using the right investment philosophy?
You can follow Klarman’s lead and develop your own game plan too successfully navigate the investment world, by attending the 3-day Australian Value Investing Program in July.
Less than 3 days remaining to claim your early bird discount at registration.
I don’t want you to miss out, and I’m looking foward to meeting you there.
Yours in investing
Adam C. Parris
Article by Searching For Value
