READING RECOMMENDATIONS (iii)

Seth Klarman’s writings are always refreshing. In his 2011 Shareholder Letter (email me if you are looking for it) he gives a romantic summary of how a successful investment operation should look like: 

“You would see a sound process, highlighted by a calm, reasoned, and dispassionate atmosphere for decision-making. No second guessing or whining or double-jeopardy for anyone. A respect for and openness to all points of view. Decisiveness at critical junctures. The humility to know that a decision might be wrong, that we can never be completely sure, and the equanimity to live with both successes and mistakes and move on. You would never see us get deal heat, though you would often see us become intensely focused on timely exits. You would see the determination to separate emotion from our process, the effort never to confuse facts with opinions and, most importantly, the tireless pursuit of excellence. You would see portfolio actions taken never for the wrong reasons of ego, personal advancement, arrogance, fear, or greed, but for the proper, well-considered reason that it is the right thing to do for our long-term investment success.”

I would work for Baupost for free…