Jul 17, 2023
Seth Klarman is a legendary value investor and CEO and Portfolio
Manager of The Baupost Group, an investment firm founded in 1982
that manages $27 billion. Seth authored the very out-of-print
Margin of Safety and edited the recently released 7th edition of
Graham and Dodd’s value investing classic, Security Analysis.
Our conversation covers Seth’s early experience in business and
investing, path to Baupost, timeless value investing principles and
those that have changed over time. We discuss Baupost’s application
of value investing across sourcing, diligence, portfolio
construction, and risk management. We then turn to Seth’s thoughts
illiquidity, international investing, the weird current
environment, positioning portfolios for it, alignment with clients,
succession at Baupost, and his updated perspectives on Securities
Analysis and Margin of Safety. We close discussing Seth’s personal
investments in the Boston Red Sox, horse racing, and
philanthropy.
Seth generally stays away from the public eye, so I was
particularly grateful to share this conversation some twenty-five
years after we first met.
For full show notes, visit the episode webpage
here.
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