The Difference Between Seth Klarman And Warren Buffett

When asked to compare himself to Warren Buffett in an interview with Charlie Rose, Klarman said:

“Warren evolved through three stages. He went from buying cigar-butts and getting the last few puffs for free, to buying great businesses at really cheap prices, to buying and holding great businesses at so-so prices. And maybe even this new area of buying weird securities from crappy businesses at better than market prices—like B of A [Bank of America] preferred or whatever. I’m still in phase one. We’re still buying cigar butts, there’s a good business there in buying them and it’s a lot of fun.”

On this site, the priority is #2, #3, and #1. Yeah, if we can get an excellent business like McCormick at $30 per share, or Brown Forman at under $50, party on and buy. A top-quality business at an excellent price is the fertile soil sprinkled with … Read the rest of this article!