market folly

A few months back, Charlie Rose interviewed Baupost Group's legendary investor Seth Klarman. Just yesterday, we posted up notes from Seth Klarman's Margin of Safety so we figured this was a very appropriate follow up.

The video interview starts with talk about his nonprofit "Facing History" for the first 18 minutes or so. After that, they shift topics to Klarman's book, Margin of Safety.

One interesting tidbit from the conversation is when Klarman contrasted his investing style to that of Warren Buffett's. Baupost's leading man says that he buys "cigar butts" at cheap prices. Warren Buffett used to also do this. The difference between the two legends is that Klarman stayed focused on cigar butts while Buffett's process morphed into buying great companies at great prices and then into paying so-so prices for great companies.

Appearances and interviews by Klarman in public are rare, so needless to say this is a must-watch. Embedded below is Charlie Rose's interview with Seth Klarman:



If you missed it, be sure to check out notes from Seth Klarman's Margin of Safety.