Mohnish Pabrai, Guy Spier & Michael Shearn on Investment Checklists

Let’s start with a few words from Mohnish Pabrai on the use of an investment checklist from the Value Conferences session (see links below).

“For example, typically when I run the checklist the first time when I’m looking at an investment — it’s actually the last thing I do before making an investment — it usually takes no more than 15-20 minutes, maybe 30 minutes max to run it, but the first time I run it, it actually pops up all sorts of questions to which I don’t know the answer. That’s like been the biggest value addition, which is there are these blind spots that I have completely ignored. Then I go back and research the business some more to get answers to those questions and sometimes that can take a week or longer. Then I rerun a second time. Now the second time when I rerun it, we’ve got all the questions answered and we can see the failure or possible failure points.”

—Mohnish Pabrai

Go here for full transcript of the session.

See here for original post at Value Conferences.

Disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company or individual mentioned in this article. I have no positions in any stocks mentioned.

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