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Quote of the day by Seth Klarman: "The ability to not be getting margin calls, not be having redemptions, not be scared out of your mind when something’s gone against you is probably the most enhancing thing to long term returns."
Economic Times 1 hr ago·18 Aug 2026, 11:56 am
Seth Klarman, a legendary value investor, recently emphasized that the ability to stay calm and avoid forced selling during market volatility is a key driver of long-term wealth creation. His quote underscores the critical role of financial and emotional resilience for investors.
This resilience is largely built on maintaining liquidity and avoiding excessive leverage. By keeping cash reserves and not borrowing heavily to invest, an investor protects themselves from margin calls and the panic of forced redemptions during downturns. This strategy allows them to buy quality assets at lower prices when others are selling in a frenzy.
For retail investors, the lesson is to focus on the long game. Staying invested through market swings prevents locking in losses and ensures you are positioned to benefit when the market recovers. The key takeaway is to prioritize capital preservation and a steady, disciplined approach over trying to time the market.
Key takeaways
- Category: Stocks.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.
