David Abrams: Focus on Multiple Future Paths in Investing
David Abrams, Founder of Abrams Capital and former Baupost Group investor, seldom speaks publicly. In a rare interview with Value Investing with Legends, he shared key principles behind his investing strategy.
Investing begins with a simple but critical question: “What’s the risk?” As David Abrams explains, the first step is understanding whether an investment could wipe you out completely, cost you just a little, or deliver steady returns.
This clear-eyed assessment of potential losses must come before any consideration of gains. Abrams stresses that the future is never certain—while history shows one path, many possibilities lie ahead. “When you look back, there’s one path that happened, but that doesn’t mean…
