Jump to content

Baupost 2012 Letter


indythinker85

Recommended Posts

The question is, what is an individual supposed to do?

 

Im no macro expert and dont consider myself a Keynesian nor Austrian, but to be honest Klarman seems to have been wrong about macro views for some time. He has bought deep out of the money options or other instruments which make a fortune (i think 100:1) if interest rates go above 10 percent. So that seems to be good investment since risk/reward is very good, gold though hasn't performed that well to say the least.

Link to comment
Share on other sites

Didn't Klarman also underperform quite a bit from the mid 90s until the tech bubble?

 

I think so plus manages much more now, harder to beat. Im not attacking Klarman, just saying (although didnt make myself clear at all) many investors like Buffett are more bullish than Klarman. Other great value investors can be found on both sides of the spectrum, so not sure what people are supposed to make of that!

Link to comment
Share on other sites

Guest wellmont

interesting thing about klarman who is a genius. forbes reprinted a piece he did from 1990 I believe. He was ranting about how things were nuts and how stocks were overvalued. I then overlaid what he said to a chart of the stocks going back from now to then. Needless to say it was a great time to be buying stocks. And as Buffett says the biggest mistake we can make is taking ourselves out of the game. Kalrman is brilliant, and makes investors a ton of money...but lets just say he's a "different breed".

Link to comment
Share on other sites

interesting thing about klarman who is a genius. forbes reprinted a piece he did from 1990 I believe. He was ranting about how things were nuts and how stocks were overvalued. I then overlaid what he said to a chart of the stocks going back from now to then. Needless to say it was a great time to be buying stocks. And as Buffett says the biggest mistake we can make is taking ourselves out of the game. Kalrman is brilliant, and makes investors a ton of money...but lets just say he's a "different breed".

 

wellmont,

imo it is not enough.

I am always invested in productive businesses, and yet sometimes I am aggressive in my business dealings and sometimes I am defensive. To behave always the same way, irrespective of what’s happening around you, doesn’t make a lot of sense to me…

On this topic I think the 2013 semi-annual report by the GoodHaven Fund is a very good read.

 

giofranchi

 

Link to comment
Share on other sites

sorry, sanj! :-X

 

Thanks, indy! :)

 

Cant send these things unfortunately besides for reason Parsad said but its likely AR, ZH, BI and VW will post some information since they usually do. Q1 is not out yet but I would be surprised if it was not out by next week.

Link to comment
Share on other sites

  • 2 months later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...