David Abrams, who manages nearly $9 billion with his fund Abrams Capital, rarely makes public appearances.
He told attendees at a New York conference on Friday that while a short-term-only focus from investors will only end up hurting a company long-term, managers can actually be too patient.
“The long term is made up of a lot short terms,” said Abrams, who is a protegee of Baupost’s Seth Klarman.
He derided investors that look for the easy way out, saying there’s no algorithm” for investing.
Even patience has its limits.
It’s a mantra that every investor should subscribe to, according to David Abrams, managing partner of $8.7 billion hedge fund Abrams Capital.
Even though he considers himself to have “higher end patience” relative to his peers, Abrams said people who buy a stock and sit on their hands for 20 years to have a “flawed approach.”
“Being patient is very good, but there has to be a limit,” he said, noting that his firm has closely watched securities for five years before deciding to invest. “The long term is made up of a lot of short terms.”
Abrams, who is a protegee of Baupost’s Seth Klarman, gave a rare public address on Friday at …read more
Source:: Businessinsider – Finance