Is “Margin of Safety” the Most Expensive Finance Book?

May 26, 2017
J. Webster
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Apparently, according to some reviews online, you can just read Seth Klarman’s book, “Margin of Safety” at a library in a “locked room” if you don’t want to spend close to $1,000 on it. It’s also said this book is one of the most stolen library books around, since I’m guessing you can then sell it on eBay or Amazon and just pay or not pay the library fine you’ve incurred from stealing the book – or saying you lost it.

The book was written in 1991 though, so many reviewers and investors are saying it too out of date and not worth the price. Still though, if reading “Margin of Safety” helps you make better investments and not take on too much risk, then it’s probably worth trying to get a hold of it to read it. Buying it for $1K, I don’t know, that’s a lot of money. Here’s a quick run down from Amazon:

Investors are all too often lured by the prospect of instant millions and fall prey to the many fads of Wall Street. The myriad approaches they adopt offer little or no real prospect for long-term success and invariably run the risk of considerable economic loss – they resemble speculation or outright gambling, not a coherent investment program. But value investing – the strategy of investing in securities trading at an appreciable discount from 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 often-repeated admonition to invest always 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 succeeds while other approaches fail. The blueprint that Klarman offers, if carefully followed, offers the investor the strong possibility of investment success with limited risk.

‘Margin of Safety’ shows you not just how to invest but how to think deeply about investing – to understand the rationale behind the rules to appreciate why they work when they work, and why they don’t when they don’t.

Again though, if you learn how to make smarter investments then $1K isn’t too much to spend. Plus, hopefully the book price will go up in value and you can sell it after you’re read it…and I wonder if in the future, as people buy electronic versions of books more and more on their Kindles or iPads, that books will become pieces of art as they just stop making them. Klarman of course owns the copyright though, so he could easily publish more copies at some point…unless he’s hoarding all the copies now.

Click on the ad below if you want to buy “Margin of Safety” by Seth Klarman for JUST under $1,000 for the hard copy…

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