Comments on: Seth Klarman: Investing Against Deflation http://streetcapitalist.com/2008/12/05/seth-klarman-investing-against-deflation/ Wisdom on such diverse topics as: spin-offs, merger arbitrage, post-bankruptcy equities, global macro commentary and short ideas. Thu, 10 Feb 2011 04:28:00 +0000 hourly 1 http://wordpress.org/?v=3.2 By: dave http://streetcapitalist.com/2008/12/05/seth-klarman-investing-against-deflation/comment-page-1/#comment-5298 dave Tue, 22 Sep 2009 23:41:00 +0000 http://streetcapitalist.com/?p=416#comment-5298 One of the worst esoteric articles ever written on deflation.....DUH One of the worst esoteric articles ever written on deflation…..DUH

]]> By: Jae Jun http://streetcapitalist.com/2008/12/05/seth-klarman-investing-against-deflation/comment-page-1/#comment-1839 Jae Jun Thu, 11 Dec 2008 22:33:00 +0000 http://streetcapitalist.com/?p=416#comment-1839 Klarman may be a tough nut to decipher but I must say he wears a mean suit. Klarman may be a tough nut to decipher but I must say he wears a mean suit.

]]> By: Jae Jun http://streetcapitalist.com/2008/12/05/seth-klarman-investing-against-deflation/comment-page-1/#comment-5727 Jae Jun Thu, 11 Dec 2008 22:33:00 +0000 http://streetcapitalist.com/?p=416#comment-5727 Klarman may be a tough nut to decipher but I must say he wears a mean suit. Klarman may be a tough nut to decipher but I must say he wears a mean suit.

]]> By: Chris http://streetcapitalist.com/2008/12/05/seth-klarman-investing-against-deflation/comment-page-1/#comment-1812 Chris Sun, 07 Dec 2008 06:14:36 +0000 http://streetcapitalist.com/?p=416#comment-1812 Travis, you ask why you as a stockholder should be concerned with deflation. Equities by their nature are junior securities. Bondholders claims do not get marked down in deflation. If your company cannot service debt you are wiped out. Simple as that. I would suggest purchasing equities that have no debt and substantial cash balances. Japan is my favorite market now, with plenty of profitable companies near net cash. Their earnings may deflate but cash retains its value. Travis, you ask why you as a stockholder should be concerned with deflation. Equities by their nature are junior securities. Bondholders claims do not get marked down in deflation. If your company cannot service debt you are wiped out. Simple as that.

I would suggest purchasing equities that have no debt and substantial cash balances. Japan is my favorite market now, with plenty of profitable companies near net cash. Their earnings may deflate but cash retains its value.

]]> By: Chris http://streetcapitalist.com/2008/12/05/seth-klarman-investing-against-deflation/comment-page-1/#comment-5726 Chris Sun, 07 Dec 2008 06:14:00 +0000 http://streetcapitalist.com/?p=416#comment-5726 Travis, you ask why you as a stockholder should be concerned with deflation. Equities by their nature are junior securities. Bondholders claims do not get marked down in deflation. If your company cannot service debt you are wiped out. Simple as that. I would suggest purchasing equities that have no debt and substantial cash balances. Japan is my favorite market now, with plenty of profitable companies near net cash. Their earnings may deflate but cash retains its value. Travis, you ask why you as a stockholder should be concerned with deflation. Equities by their nature are junior securities. Bondholders claims do not get marked down in deflation. If your company cannot service debt you are wiped out. Simple as that.

I would suggest purchasing equities that have no debt and substantial cash balances. Japan is my favorite market now, with plenty of profitable companies near net cash. Their earnings may deflate but cash retains its value.

]]> By: Tariq http://streetcapitalist.com/2008/12/05/seth-klarman-investing-against-deflation/comment-page-1/#comment-1811 Tariq Sat, 06 Dec 2008 19:41:35 +0000 http://streetcapitalist.com/?p=416#comment-1811 Travis, I think when we invest we're not so much trying to preserve wealth but also grow it. That's why deflation can make things tough, since asset values would be falling. Travis, I think when we invest we’re not so much trying to preserve wealth but also grow it. That’s why deflation can make things tough, since asset values would be falling.

]]> By: Tariq http://streetcapitalist.com/2008/12/05/seth-klarman-investing-against-deflation/comment-page-1/#comment-5725 Tariq Sat, 06 Dec 2008 19:41:00 +0000 http://streetcapitalist.com/?p=416#comment-5725 Travis, I think when we invest we're not so much trying to preserve wealth but also grow it. That's why deflation can make things tough, since asset values would be falling. Travis, I think when we invest we’re not so much trying to preserve wealth but also grow it. That’s why deflation can make things tough, since asset values would be falling.

]]> By: market folly http://streetcapitalist.com/2008/12/05/seth-klarman-investing-against-deflation/comment-page-1/#comment-1807 market folly Sat, 06 Dec 2008 00:52:40 +0000 http://streetcapitalist.com/?p=416#comment-1807 hey good site, just wanted to toss these general investment these out for both inflationary and deflationary environments. curious as to your thoughts on what i've proposed http://www.marketfolly.com/2008/08/investment-scenarios-inflation-vs.html hey good site, just wanted to toss these general investment these out for both inflationary and deflationary environments. curious as to your thoughts on what i’ve proposed

http://www.marketfolly.com/2008/08/investment-scenarios-inflation-vs.html

]]> By: market folly http://streetcapitalist.com/2008/12/05/seth-klarman-investing-against-deflation/comment-page-1/#comment-5724 market folly Sat, 06 Dec 2008 00:52:00 +0000 http://streetcapitalist.com/?p=416#comment-5724 hey good site, just wanted to toss these general investment these out for both inflationary and deflationary environments. curious as to your thoughts on what i've proposed http://www.marketfolly.com/2008/08/investment-scenarios-inflation-vs.html hey good site, just wanted to toss these general investment these out for both inflationary and deflationary environments. curious as to your thoughts on what i’ve proposed

http://www.marketfolly.com/2008/08/investment-scenarios-inflation-vs.html

]]> By: Travis http://streetcapitalist.com/2008/12/05/seth-klarman-investing-against-deflation/comment-page-1/#comment-1806 Travis Fri, 05 Dec 2008 20:59:08 +0000 http://streetcapitalist.com/?p=416#comment-1806 Deflation is a broad decrease in the cost of things. Assets, consumables... everything. So why should I care. If my stock is worth xxx dollars and will by me a house or two, then deflation hits and my stock is worth xxx/2 dollars but will still by me a house or two, why should I care? Also when gas goes from $2 to $4 and its terrible for everyone but people invested in oil, how can it be terrible for everyone in general is gas goes from $4 to $2? Deflation is a broad decrease in the cost of things. Assets, consumables… everything. So why should I care. If my stock is worth xxx dollars and will by me a house or two, then deflation hits and my stock is worth xxx/2 dollars but will still by me a house or two, why should I care?

Also when gas goes from $2 to $4 and its terrible for everyone but people invested in oil, how can it be terrible for everyone in general is gas goes from $4 to $2?

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