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Seth Klarman: Avoidance Of Loss Is The Surest Way to Ensure A Profitable Outcome
- In his book Margin Of Safety, Seth Klarman discusses why the avoidance of loss is the surest way to ensure a profitable outcome.
- Stocks as a group, this line of thinking goes, will outperform bonds or cash equivalents over time, just as they have in the past.
- The risk of loss stemming from equity’s place in the capital structure is exacerbated by paying a higher price.