The Market Folly Quote of the Week is back in full force. Last week's quotation came from the Oracle of Omaha himself, Warren Buffett. So it's only fitting that our second quote comes from arguably Buffett's biggest competition in the 'best investor ever' category: Seth Klarman of Baupost Group.
Quote of the week:
"Here’s how to know if you have the makeup to be an investor. How would you handle the following situation? Let’s say you own a Procter & Gamble in your portfolio and the stock price goes down by half. Do you like it better? If it falls in half, do you reinvest dividends? Do you take cash out of savings to buy more? If you have the confidence to do that, then you’re an investor. If you don’t, you’re not an investor, you’re a speculator, and you shouldn’t be in the stock market in the first place."
~ Seth Klarman
~ Seth Klarman
For more from Baupost Group's manager, check out Seth Klarman's recommended reading list as well as an in-depth profile of Klarman.
