One of the best investment books that I’ve ever read was Seth Klarman’s Margin of Safety.  His investment prowess is exceptional as is his ability to articulate his ideas.  I do find his investments to be rather difficult to follow as many are quite obscure.  I believe that he does quite a bit with options, which might make his style a bit more similar to mine, but I could be wrong on that.  I found this interview on, which got it from


The interview is extremely interesting as Klarman breaks down many of his distressed debt investments in 1991, including the Texaco bonds that were bought during that company’s bankruptcy process.  The Texaco situation reminded me a bit of British Petroleum after the Macondo disaster, and it was my knowledge of that situation that led me to be a buyer of the equity as the stock plummeted.  The bonds didn’t drop enough for me to make it worth it.  Klarman rarely speaks publicly and I haven’t seen an interview with him where he goes into this type of detail so I hope that you enjoy!