Klarman Letter

Margin of Safety
Margin of Safety

For those that don’t know him, Seth Klarman is considered one of the greatest investors ever, behind Warren Buffett. His book “Margin of Safety” sells for hundreds of dollars on Amazon. So I feel his opinion is important (not always right, just important) This is quick read on the economic developments of the US since the financial crisis in 2008 and it’s not optimistic!

I found this particular quote interesting:

As Alexander Fraser Tyler said over two centuries ago, “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury.”

Sound familiar?

Klarman on the Economy


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