Billionaire investor Seth Klarman lambasts the Fed for distorting markets - and says Tesla's stock has surged 'seemingly beyond all reason'
- Billionaire investor
Seth Klarmanwarns stimulus and interest rates are masking market risks.
- The Baupost chief compared investors to "frogs in water that is slowly being heated to a boil."
- Klarman added that
Teslastock has surged "seemingly beyond all reason."
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A billionaire investor heralded as "the next
"Trying to figure out if the economy is in recession is like trying to assess if you had a fever after you just took a large dose of aspirin," he said, according to the Financial Times."But as with frogs in water that is slowly being heated to a boil, investors are being conditioned not to recognize the danger," he added.
Read more: 'I have seen this movie before': Legendary investor Jim Rogers unloads on the bubbles he says are forming across markets, particularly in big tech stocks and bitcoin - and shares 4 alternatives he would buy for his kid over the next decadeKlarman highlighted Tesla as an example of how heady
Warren Buffett himself has tapped the Baupost boss as his spiritual successor. When a college student asked the
Klarman and his team have been more adventurous than Buffett in recent months. Baupost's latest portfolio update revealed a $400 million stake in Bill Ackman's special-purpose acquisition vehicle, Pershing Square Tontine, as well as a $52 million position in Redball Acquisition Corp, another SPAC that is co-chaired by "Moneyball" star Billy Beane.On the other hand, Baupost slashed its stakes in Google-parent Alphabet and Facebook in the second and third quarters of 2020, after establishing those positions in the first quarter. Those moves suggest Klarman is concerned those technology
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