After discussing how he went about finding value, and the conservative method used to arrive at an intrinsic value, Seth Klarman moved on to talk about the value mentality. Specifically:
"Barron's: There was a time, not very long ago, when everyone was a value investor.
Klarman: In the mid-to-late' Eighties, you had this explosion or proliferation of investors in what I would call private market value, which is a very dangerous term. They don't call themselves value investors. But I think there was both a self-fulfilling prophecy going on and a circularity to it. If somebody did a takeover, they said, that is private market value; it didn't matter if that person knew what they were doing or...
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