For many people that struggle to read the Intelligent Investor by Benjamin Graham, there’s good news, Billionaire Seth Klarman has written a book that does a better job of outlining the value investing approach.  The only problem is Klarman’s book typically costs around $700 to purchase.

In this episode, Preston and Stig read Klarman’s book and discuss the important attributes of what they learn. So who’s Seth Klarman and why’s his book so expensive?  Born in 1957, in New York City, Klarman’s father was an economist at Johns Hopkins University and his mother taught English.  At an early age, Klarman was fascinated with business and making money.  By the age of ten he was already investing in the stock market and by his college years, he got into Cornell to study economics.  During Klarman’s time in the investing world, he’s been able to compound capital at a 20% annual return and he’s managed to build a $31 billion dollar fund.  In 1991 Klarman wrote his book, Margin of Safety, and ever since the first publication, there have only been 5,000 copies printed.  As a result of such a small supply and enormous demand, Klarman’s book is very expensive.

In this episode, you’ll learn:

  • The different methods for stock investing valuations
  • The difference between investors and speculators
  • When you should hold short term and long term bonds
  • How to counteract risk in your portfolio

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Seth Klarman’s book, Margin of Safety – Read reviews of this book

Preston and Stig’s podcast episode on The Intelligent Investor

Preston and Stig’s interview with Investing Legend Bill Miller