bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

authorLocations

authors

paywallTypes

corrections

sponsorType

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Business Insider

Getty Images/ Kevork Djansezian
Billionaire value investor Seth Klarman is one of the most successful hedge fund managers of all time.
Klarman, the 58-year-old founder of $27 billion Boston-based Baupost Group, ranks No. 4 on the all-time list, according to a new report from LCH Investments.
Since his fund's inception in 1983, he has made his investors net gains of $22.6 billion.
During his career, he's only had three losing years, including 2015. Baupost's public-investments portfolio fell 6.7% in 2015, while the fund's private investments gained 2.4%, according to an investor update seen by Business Insider.
In his fund's year-end letter, Klarman explained what it takes to be a successful investor:
Did we ever mention that investing is hard work — painstaking, relentless, and at times confounding? 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."
NOW WATCH: London's new 'anti-gym' chain 1Rebel features music curated by top DJs and free beer
See Also:

A hedge fund manager shares the 10 things that could surprise the market this year
Here's how much people make working for a hedge fund
One of the world's best value investors has a warning about those Silicon Valley 'unicorns'

 
Click here to visit Business Insider


Trump, Musk highlighted in Ben & Jerry’s suit against Unilever over social mission interference

Steve Bannon says tech ‘oligarchs’ have ‘surrendered’ to Donald Trump

Inside Melania Trump’s humble Slovenian hometown: a tourist destination since Donald Trump was first elected president in 2016, Sevnica now has a statue and salami dedicated to the FLOTUS

What did we find out from Diddy: The Making of a Bad Boy? The new Peacock docu’s most disturbing details revealed – as former friends and associates of the disgraced hip-hop mogul share what they saw

Billionaire hedge fund manager Seth Klarman explains what makes a successful investor

Credit: Getty Images/ Kevork Djansezian

Business

Articles imported from external feeds - eg Associated Press


Feed