Seth Klarman, author of "Margin of Safety" loses $645m on PG&E

[ZBZB]

If you are good at googling or binging you can find the PDF of the book.

Like my post as well!

 

[peilthetraveler]

One thing I took note reading the book:

As part of his value investing philosophy, he advocated averaging down when buying. This seemed contradicting what most ET posters said: NEVER AVERAGE DOWN!!!

Any comments or words of wisdom?

Good advice, but sometimes I still end up doing it only to quickly learn why I should never do it. I actually did it recently with FB options and ended up holding 70 FB puts with a $144 strike. It's taken me about 2 weeks to get most of that money back.

 

[ironchef]

Good advice, but sometimes I still end up doing it only to quickly learn why I should never do it. I actually did it recently with FB options and ended up holding 70 FB puts with a $144 strike. It's taken me about 2 weeks to get most of that money back.

You should be printing money with your FB options in its current trend!

 

[dealmaker]

Baupost’s Seth Klarman Hires Investment Chief to Manage Foundation’s Assets(The Wall Street Journal)
Billionaire investorSeth Klarmanwill no longer manage his family foundation’s money day-to-day, a move that is expected to give him more time to manage his $27 billion hedge-fund firm. Mr. Klarman ofBaupost Group LLCappointed stockpicker David Berkowitz to manage the Klarman Family Foundation’s assets, according to people familiar with the matter. That investment chief post is housed within Mr. Klarman’s family office, KFO LLC. Mr. Klarman will retain discretion over investment decisions.