Wednesday, April 11, 2012

Seth Klarman quote on silos

From The Most Important Thing Illuminated (book to be released April 17th....Kindle edition HERE):

“Silos are a double-edged sword. A narrow focus leads to potentially superior knowledge. But concentration of effort within rigid boundaries leaves a strong possibility of mispricings outside those borders. Also, if others’ silos are similar to your own, competitive forces will likely drive down returns in spite of superior knowledge within such silos.” –Seth Klarman