Margin of Safety

By: Seth Klarman

This book is the holy grail for investors looking to actively manage their personal portfolios. Margin of Safety is often viewed as the modern Security Analysis (written by Ben Graham and David Dodd).

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Overview

In this book, Mr. Klarman provides in-depth analyses of investment situations his firm has encountered over the years. By seeing examples of relatively recent investments, readers of this book can learn how to implement a successful value-investment strategy in today’s market. Klarman rejects the idea that markets function efficiently, and he shows how to identify investments in which market price has diverged from intrinsic value. In addition, he delves into the topic of investor psychology and uses anecdotes to strengthen his case. Not many books from Wall Street are packed with as much wisdom found in Margin of Safety.

By the way, Warren Buffett keeps a copy of this book near his desk at Berkshire Hathaway.

We rate this book a 4.8/5.0. If it was less expensive, it would be a 5/5.

Find Margin of Safety on Amazon

You can read more, see customer reviews, and purchase this book on Amazon at: Margin of Safety – Amazon.

This is a pricey book because it is no longer being printed. Purchasing it may constitute an investment for some people. The current price for the book is lower than its historical price, and it may become more expensive at a later date.

About Seth Klarman

The Baupost Group, founded by Seth Klarman, is a secretive hedge fund with somewhere around $27 billion in assets under management. The Baupost Group has significantly outperformed the average market since its inception in 1982. It is regarded as one of the best hedge funds in the world.

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