Money and Finance
- Dhandho Holdings Makes Acquisition
Mohnish Pabrai's foray into the insurance business... Link to: Dhandho Holdings To Acquire Louisiana-Based Stonetrust Commercial Mutual Insurance Holding Company And Related Companies "Stonetrust is a wonderful business with an exceptional management...
- Mohnish Pabrai Interview Segments On The Motley Fool
Thanks to Will for passing these along. Links to: Checklist Investing: How to Avoid Errors and Learn From Mistakes The Number One Trait of a Successful Investor How Investors Should Think About the Economy The Untraditional Path of Becoming a Great Investor...
- Greg Speicher’s Search Checklists
Greg Speicher’s checklists for finding new investment ideas, from his short Kindle book, How to Become a Better Investor: “First, I have a checklist of great investors whom I track for new ideas. Second, I have a checklist of publications, forums...
- The Manual Of Ideas: Jacob Wolinsky's Interview With Guy Spier
I can, however, talk a little bit about creating the checklist and provide some examples. The process of creating a checklist is very simple and works the same way the Federal Aviation Administration does it. You look for mistakes — yours, mine, Warren...
- Buffett’s Lunch Date, Surgeons Improve Results With Checklists
The first checklists in aviation went into use four generations ago, but their potential to prevent errors and save lives is only now beginning to be appreciated among other professions, such as finance. Gawande tells the story of Mohnish Pabrai, an investment...
Money and Finance
A Checklist for Investors - By Jason Zweig
Decades' worth of psychological studies show that people are extremely good at figuring out which information they need for a decision—but do a poor job of using that evidence methodically over time. You are likely to draw divergent conclusions from identical data on different occasions, even when nothing fundamental has changed, because of variations in context, alterations in your mood, shifting demands on your attention and memory, and so forth.
No wonder John Mihaljevic, editor of the Manual of Ideas, a website for value investors, says wryly that he uses checklists to combat his tendency to make "the same type of mistake again and again."
Structuring your decisions this way, says Michael Shearn, author of the book "The Investment Checklist," forces you to take "a holistic view" of a stock or other asset. That should reduce your odds of being flummoxed by the unexpected.
"When we look to make an investment, the greed part of the brain is turned on," says Mohnish Pabrai, managing partner of Pabrai Investment Funds in Irvine, Calif., a group of private portfolios with assets of approximately $700 million. "A checklist is like a circuit breaker that helps prevent the brain from being able to flip that switch."
To build his list, Mr. Pabrai studied his mistakes and those of great investors like Warren Buffett. Anyone "can build a customized checklist based on your own history of your own failures," he says. Mr. Pabrai advises investors to review their past decisions that lost money.
"Rub your nose in your own failures," he urges. "Avoiding the mistakes you've made in the past will take your error rate way down in the future."
Mr. Pabrai says he believes that the flubs made by great investors fall into five groups: valuation, or how cheap an investment is; leverage, or risks associated with borrowing; management and ownership; "moats," or how well-fortified business are against competition; and personal biases.
First he does all his other research; then he works through the checklist to make sure he didn't miss anything.
- Dhandho Holdings Makes Acquisition
Mohnish Pabrai's foray into the insurance business... Link to: Dhandho Holdings To Acquire Louisiana-Based Stonetrust Commercial Mutual Insurance Holding Company And Related Companies "Stonetrust is a wonderful business with an exceptional management...
- Mohnish Pabrai Interview Segments On The Motley Fool
Thanks to Will for passing these along. Links to: Checklist Investing: How to Avoid Errors and Learn From Mistakes The Number One Trait of a Successful Investor How Investors Should Think About the Economy The Untraditional Path of Becoming a Great Investor...
- Greg Speicher’s Search Checklists
Greg Speicher’s checklists for finding new investment ideas, from his short Kindle book, How to Become a Better Investor: “First, I have a checklist of great investors whom I track for new ideas. Second, I have a checklist of publications, forums...
- The Manual Of Ideas: Jacob Wolinsky's Interview With Guy Spier
I can, however, talk a little bit about creating the checklist and provide some examples. The process of creating a checklist is very simple and works the same way the Federal Aviation Administration does it. You look for mistakes — yours, mine, Warren...
- Buffett’s Lunch Date, Surgeons Improve Results With Checklists
The first checklists in aviation went into use four generations ago, but their potential to prevent errors and save lives is only now beginning to be appreciated among other professions, such as finance. Gawande tells the story of Mohnish Pabrai, an investment...