Author: Saj Karsan

In the previous four chapters, Klarman focused on describing how investors go wrong. Chapter 5 is an introduction to the second part of the book, where Klarman describes the philosophy of value investing.Klarman quotes...

In this chapter, Klarman examines the junk bond market in depth to illustrate how Wall Street can create investment fads, only to leave investors much poorer when the tide goes out.In the early to mid-1980’s, Wall Street...

In order to determine whether a company is worthy of an investment, it is important to understand exactly how it makes money. Only then can one understand a firm’s business and financial risks. Often, however, the only way...

When the rest of the market panics and a wild sell-off ensues, value investors calmly increase their market holdings. As the unemployment rate increases and more investors panic, value investors become giddy as they swallow up...

Perceptive readers may have noticed that this site recently crossed the 400 plateau in terms of feed subscribers. For those of you who don’t know what that means (and you could have counted me as a member of this group a...

In this chapter, Klarman discusses how the investment world has changed over the last several decades, and how understanding these changes allows investors to earn superior returns. From 1950 to 1990, the institutional share of...

What’s good for Wall Street is not necessarily good for investors, according to Klarman. Because of how Wall Street does business, it has a very short-term focus. For example, Wall Street makes money up-front on...

This article originally appeared on The Div Net on April 8th, 2009.Occasionally, an investor may believe a stock to be undervalued based on his estimate of the business’ underlying value. If his estimate is...