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Klarman Held 50 Percent Cash Amid Scarce Value
Posted by: AlbertaSunwapta (IP Logged)
Date: February 13, 2014 09:13AM

Klarman Held 50 Percent Cash Amid Scarce Value

by Michael IdeJanuary 27, 2014

[www.valuewalk.com]



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Rating: 4.3/5 (6 votes)



Re: Klarman Held 50 Percent Cash Amid Scarce Value
Posted by: vgm (IP Logged)
Date: February 14, 2014 06:35AM

No surprise to anyone who has followed Klarman over the years. He made more money than god coming out of the recession thru debt instruments many of which have matured. He also wanted to limit the AUM. And keep in mind that only a small fraction of his fund is in equities.



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Re: Klarman Held 50 Percent Cash Amid Scarce Value
Posted by: rlawson36 (IP Logged)
Date: February 14, 2014 01:35PM

so WHEN was "amid scarce value" specifically? You phrase this in past tense; Bu are you talking about now? 6 months ago? Prior to the 2008 sell-off? Where do you find this data?



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Re: Klarman Held 50 Percent Cash Amid Scarce Value
Posted by: AlbertaSunwapta (IP Logged)
Date: February 15, 2014 04:17PM

Klarman has a rationale for holding gold too.



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Re: Klarman Held 50 Percent Cash Amid Scarce Value
Posted by: AlbertaSunwapta (IP Logged)
Date: February 15, 2014 04:18PM

According to that article, Klarman has rationalized holding gold too.



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Re: Klarman Held 50 Percent Cash Amid Scarce Value
Posted by: vgm (IP Logged)
Date: February 16, 2014 04:01AM

AS - Klarman's views on gold are not new either. He has often talked about gold as a kind of insurance. See, for example, this interview in 2010 with Jason Zweig:

[www.pmjar.com]



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Re: Klarman Held 50 Percent Cash Amid Scarce Value
Posted by: AlbertaSunwapta (IP Logged)
Date: February 18, 2014 05:36PM

That's how I've always seen gold - not as a greater fool product but as insurance for fairly rare but severe events like war, hyperinflation, currency colllapse / overnight devaluation, payments system failure, etc. However, I'm not sure that it is all that useful as insurance since Buffett doesn't buy into it and even recommends against it. As such, I'd like to see Klarman and Buffett debate the pros and cons.

Gold bullion is one thing however, gold producers, lowest cost gold producers that is, are another matter since there will always likely be some fairly stable core level of demand as global population, wealth and deevelopment increases, they should behave much like any other durable/recyclable commodity producer. This is where I believe Klarman is seekng to obtain both economic value and a dregree of portfolio insurance.



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Re: Klarman Held 50 Percent Cash Amid Scarce Value
Posted by: rlawson36 (IP Logged)
Date: February 18, 2014 06:31PM

>> As such, I'd like to see Klarman and Buffett debate the pros and cons. >>

Awesome idea.

I think about both of their perspectives when it comes to gold and, though you should never bet against Mr. Buffett, I like gold and Klarman on this one.

Btw, on my original question above, I asked "when he held cash" but didn't realize the web link (which outwardly, didn't appear to go to a specific article) went to the article, which I've now read and appreciate.



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