Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor

Investors are often attracted by the prospect of instant millions and fall prey to Wall Street's many fads. The myriad of approaches they adopt offer little or no real prospect of long-term success and invariably run the risk of considerable economic losses - they resemble speculation or outright gambling, not a coherent investment program. 

But value investing - the strategy of investing in bond trading at a considerable discount to the underlying value - has a long history - has a long history of delivering excellent investment results with limited downside risk. Taking its title from Benjamin Graham's oft-repeated admonition to always invest with a margin of safety, Klarman's 'Margin of Safety' explains the philosophy of value investing and, perhaps more importantly, the logic behind it, demonstrating why it has success while other approaches fail. The project that Klarman offers, if followed carefully, offers the investor the strong possibility of investment success

Read more
photo of library with turned on lights

Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor

In 1991, when Seth Klarman was 34, he published Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor at HarperCollins. The book initially sold only 5,000 copies at $ 25 each and was considered a "flop". In a 2017 interview with Charlie Rose, Klarman considered re-publishing a limited edition of Margin of Safety with the proceeds for charity, but was otherwise not interested in reviving the book. On July 6, 2018, a Kindle edition of the book was silently posted on the Amazon website. Within days, the unauthorized Kindle edition of the book hit 16th place in the "Business and Investments" section of the online bookstore. Baupost Group responded to the illegal copying by saying, "The Kindle version of Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor on Amazon is an unauthorized version that is being sold in violation of the registered copyright law owned by Seth Klarman. 

Mr. Klarman has not authorized the republication of the safety margin, electronically or in any other format. Our Legal Department is taking action and will take appropriate action on this matter. " Despite the initial flop, the book has over time achieved "cult" status in the value investing community and has been revered as a kind of "Bible". This resulted in a physical copy valuation of the book at $ 500 to $ 2,500 each. The high price of the book has led to piracy. The book was featured in a series of recommended reading lists in the investment press.

Subscribe

Sign up to our newsletter and stay up to date

Subscribed!

Thank you for subscribing to our newsletter.

Address

ISBN 978-0887305108
Seth Klarman

About us

Investors are often attracted by the prospect of instant millions and fall prey to Wall Street's many fads.

Follow us