Don't Let the Market Point a Gun to Your Head 🎯

Klarman's Relative Performance Gun 🔫 Seth Klarman criticizes investment goals that aim to "beat the market." He compares this to having a gun to your head: it forces you to make short-term decisions.

Klarman's Relative Performance Gun 🔫

Seth Klarman, a legendary value investor, believes that investors should focus on absolute returns, not relative returns. In other words, he believes that investors should focus on making money, not beating the market.

Photo by Max Kleinen

Klarman argues that a focus on relative returns leads to short-term thinking and…