Seth Klarman, the New Jewish Warren Buffet, Bearish on Trump

Seth Klarman Image by The Israel Project

By Daniel J. Solomon February 7, 2017

Seth Klarman, the billionaire financier whose advice books sell for thousands of dollars on the Internet, is here to the burst the bubble of his fellow investors: Don’t get your hopes up about a Trump economic boom.

Most concerning for Klarman is the new president’s personality. “The erratic tendencies and overconfidence in his own wisdom and judgment that Donald Trump has demonstrated to date are inconsistent with strong leadership and sound decision-making,” he added.

“Exuberant investors have focused on the potential benefits of stimulative tax cuts, while mostly ignoring the risks from America-first protectionism and the erection of new trade barriers,” Klarman, head of the Boston-headquartered Baupost group, wrote in a letter obtained by The New York Times, warning that President Donald Trump’s opposition to free trade could hinder growth of the economy and the stock market.

Investor Warren Buffet, also known as the “Sage of Omaha,” writes similar letters to his investors.

He also warned that tax cuts might swell the federal government’s debt.

Klarman, cofounder of The Times of Israel, usually sides with Republicans and right-wing causes, but he opposed Trump’s election, giving the maximum donation to rival Hillary Clinton, who he said was more qualified to lead the country.

Contact Daniel J. Solomon at solomon@forward.com or on Twitter @DanielJSolomon

Daniel J. Solomon is the former Assistant to the Editor/News Writer at the Forward. Originally from Queens, he attended Harvard as an undergraduate, where he wrote his senior thesis on French-Jewish intellectual history. He is excited to have returned to New York after his time in Massachusetts. Daniel’s passions include folk music, cycling, and pointed argument.

A message from our CEO & publisher Rachel Fishman Feddersen

I hope you appreciated this article. Before you go, I’d like to ask you to please support the Forward’s award-winning, nonprofit journalism during this critical time.

The coming year promises to be filled with more complex and historic developments. We are entering an era where independent, fact-based Jewish journalism will be more important than ever. We need to be ready for whatever 2025 will bring, and with your help, we can be.

We’ve set a goal to raise $260,000 by December 31. That’s an ambitious goal, but one that will give us the resources we need to invest in the high quality news, opinion, analysis and cultural coverage that isn’t available anywhere else.

If you feel inspired to make an impact, now is the time to give something back. Join us as a member at your most generous level.

— Rachel Fishman Feddersen, Publisher and CEO