“One of the big issues investors face is preconceived perspectives. When we look at a stock, what goes on in our brains when we encounter a company for the first time? For the first 30, 60 seconds, or first couple minutes? That has a huge impact on our financial well being and how our portfolio does. In the first few minutes, you’re making a decision on whether you’re going to take a pass at a company, or spend another 15 minutes. And at the end of that 15 minutes, you’re going to make another decision as to whether you’re going to take a pass or spend an hour or two, and so on. No investor has enough time in the day, week or year, to look at anything more than a small handful of businesses in some depth…. I think it’s very important to be aware of commitment bias, and to be very aware that the first two or three minutes that when you’re looking at a company are when you have to make the call. It’s okay to let a winner go, but more important not to let a loser stay.” —Mohnish Pabrai
Links - 4/4/2021
Links - 4/4/2021
Links - 4/4/2021
“One of the big issues investors face is preconceived perspectives. When we look at a stock, what goes on in our brains when we encounter a company for the first time? For the first 30, 60 seconds, or first couple minutes? That has a huge impact on our financial well being and how our portfolio does. In the first few minutes, you’re making a decision on whether you’re going to take a pass at a company, or spend another 15 minutes. And at the end of that 15 minutes, you’re going to make another decision as to whether you’re going to take a pass or spend an hour or two, and so on. No investor has enough time in the day, week or year, to look at anything more than a small handful of businesses in some depth…. I think it’s very important to be aware of commitment bias, and to be very aware that the first two or three minutes that when you’re looking at a company are when you have to make the call. It’s okay to let a winner go, but more important not to let a loser stay.” —Mohnish Pabrai