Skip to main content

Margin of Safety

Value investors: the August 7 issue of BusinessWeek contains an article on Seth Klarman's "out-of-print investing classic", Margin of Safety. The article is entitled, "The $700 Used book".

The book, published in 1991 but never revised or reprinted, now carries quite a premium in the used-book market. At the time of publication, copies at Amazon.com were offered from $700 up to $2,500. Currently, it seems the bid has been upped at the lower end of the scale; the cheapest copy on offer at Amazon lists for $1,285.95.

What's all the hype about? I'm not sure since I've never read the book. But Klarman's reputation as a successful investor has solidified over time, thanks to his Baupost Group's cumulative return, since inception, of 6,133% after fees.

Here's a link to one reader's notes on Margin of Safety, for those who'd like a preview.

A growing number of investors and investing enthusiasts seem to be flocking to the wisdom found in Klarman's book. According to BusinessWeek's article, "University libraries report it as one of their most wait-listed titles as well as one most claimed as lost".

I guess that means that anyone buying an ex-libris copy of Margin of Safety should check to make sure that the seller isn't supplying you with a book marked "lost" from a library's collection. If anyone else has read a copy of it, feel free to give us a report.

Related posts:

1. Seth Klarman: Margin of Safety (pdf).

2. Seth Klarman: Lessons of 2008.
  
Subscribe to our free email newsletter. You can follow our real-time updates on Twitter.

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.

Moneyball: How the Red Sox Win Championships

Welcome, readers. To get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter.

The Boston Red Sox won their fourth World Series titleof the 21st century this week.

Having won their first Series in 86 years back in 2004, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it?

Quick background: in late 2002, team owner and hedge fund manager,John W. Henry(with his partners)bought the Boston Red Sox and its historic Fenway Park for a reported sum of $695 million.

Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship.

This brings us to one of my favorite scenes from the 2011 film, Moneyball, in which John W. Henry (played by Arliss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pitt) over to Boston with an excellent job off…