Book Summary: Deep Value

Book: Deep Value

Author: Tobias Carlisle

Key takeaways: The book is very so-so for a decent practitioner, so doesn’t yield very many new insights, but does have a couple of very interesting excerpts from other famous investors and I found ploughing through the book valuable-enough just for that.

  • Munger:
    • “…although I consider myself to be in the quantitative school… the really sensational ideas I have had over the years have been heavily weighted toward the qualitative side where I have had a high-probability insight… however it is an infrequent occurrence.”
    • “…the really big money tends to be mad bey investors who are right on the qualitative decisions, but… the more sure money tends to be made on the obvious quantitative decisions.”
  • Klarman:
    • “… investors have to learn to live with less than complete information… even if an investor could know all the facts about an investment, he or she would not necessarily profit.”
    • “Most investor strive fruitlessly for certainty and precision… yet high uncertainty is frequently accompanied by low prices. By the time uncertainty is resolved, prices are likely to have risen.”

Interesting tidbits on AUMs at launch:

  • David Einhorn founded Greenlight Capital in ’96 with just $900k under management.
  • Daniel Loeb founded Third Point in ’95 with just $3.3 mm in assets.

 

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