MiB: Seth Klarman, The Baupost Group



This week, I speak with Seth Klarman, CEO and portfolio manager of The Baupost Group, a Boston-based investment manager with a multi-strategy approach. Founded in 1982 with $27 million in seed capital, Baupost has grown over the past four decades to $22 billion in assets, with annual net returns of over ~20%. The legendary investor is known for his patient, risk-averse, and contrarian approach to finding deeply discounted securities across equities, distressed debt, and real estate.

Klarman is a value investing legend who comes from the school of Graham and Buffett. Known as the “Oracle of Boston,” he is the author of Margin of Safety (1991) and the editor of the 7th edition of Security Analysis (2023). We discuss Seth’s start as a 25-year-old and his 40-year journey running Baupost. He explains his approach to risk, IPOs, and sectors, along with his sports passions, including a smaller ownership in the Boston Red Sox, horse racing, and his feelings about the Boston Celtics’ 2026 season.

A list of his current reading/favorite books is here; A transcript of our conversation is available here next week.

You can stream and download our full conversation, including any podcast extras, on Apple Podcasts, Spotify, YouTube (video), YouTube (audio), and Bloomberg. All of our earlier podcasts on your favorite pod hosts can be found here.

Be sure to check out our Masters in Business next week with Carl Richards, a financial advisor who is also the creator of the Sketch Guy column, which ran weekly in New York Times for a decade. He hosts Behavior Gap Radio (1,300+ episodes) He co-hosts “Kitces & Carl — Real Talk for Real Financial Advisors” with Michael Kitces.” Richards latest book is Your Money: Reimagining Wealth in 101 Simple Sketches.”

Current Reading/Favorite Books

Authored Books

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