Friday, 21 June 2013

Investors need to pick their poison.

Investors need to pick their poison:  Either make more money when times are good and have a really ugly year every so often, or protect on the downside and don't be at the party so long when things are good.

Seth Klarman:  At Baupost, we are all clearly in the same camp.  We have all our own money invested in the firm, and so we are very conservative.  We have picked our poison.  We would rather underperform in a huge bull market than get clobbered in a really bad bear market.

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