About this episode

Seth Klarman discusses his investment philosophy and experiences in value investing with host Michael Mauboussin.

In this episode, host Michael Mauboussin sits down with Seth Klarman, CEO and portfolio manager of The Baupost Group. One of the most influential practitioners of value investing, Seth shares his formative stories — from arbitraging coins as a kid to launching Baupost in 1982 — and reflects on his decades-long investment philosophy. They explore timeless principles of market inefficiencies, the importance of temperament, specialization versus generalization, the role of patient capital, and the challenges and opportunities ahead for investors in today's world. Seth also opens up about technology trends like AI, the evolving market structure, and the enduring lessons from Graham & Dodd — and much more! Key Topics: Seth's early entrepreneurial ventures and coin arbitrage (2:10) Lessons from working at Mutual Shares with Max Heine and Michael Price (4:12) Starting Baupost and managing the founding families' wealth (10:53) Core principles behind value investing and market inefficiencies (13:06) The impact of indexing, ETFs, and passive investing trends (16:42) Generalists vs. specialists in investment research (19:06) How Baupost evaluates opportunities across asset classes (21:13)…

People in this episode

Host: Michael Mauboussin

Guest: Seth Klarman

Topics covered

• contrarian investing
• value investing
• market inefficiencies
• investment philosophy
• technology trends
• patient capital
• behavioral biases

Keywords

• value investing
• Baupost Group
• market inefficiencies
• investment philosophy
• technology trends
• behavioral biases
• contrarian investing

Mentioned in this episode

Organizations: The Baupost Group, Mutual Shares

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