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Critiquing Klarman

Seth Klarman wrote a very good piece for the FT yesterday on the 12 things he's learned from Warren Buffett. Only an idiot would disagree with Klarman so, like any good idiot, I wanted to write my own version/critique of Klarman's thoughts:

1. Value investing works. Buy bargains.

CR here - Yes, value investing works. I embrace value investing where appropriate. But it's also tremendously difficult. As Buffett has stated on several occasions, you're probably better off not trying to do what he does. You're better off buying low fee index funds. More importantly, you should think of "investing" as your primary source of income. The thing most people call investing is actually a reallocation of savings. Treat it like savings and avoid the gambler mentality that leads so many astray.

2. Quality matters, in businesses and in people. Better quality businesses are more likely to grow and compound