Mohnish Pabrai on Checklist Investing: Learning From Mistakes
From market folly January 17, 2013 - 9:00am
Value investor Mohnish Pabrai sat down for an interview with The Motley Fool to talk about his approach and how he uses checklists in his investment process.
Checklist Investing & Learning From Mistakes
Pabrai had an epiphany after learning from concepts discussed in Atul Gawande's book The Checklist Manifesto. Essentially, he tries to learn from his mistakes by figuring out what went wrong with certain investments and how he could have prevented losses/a specific outcome.
But he also looked at some of the best investors in the world and incorporated their mistakes as well (looking at Warren Buffett, Charlie Munger, LongLeaf Partners, Third Avenue, etc).
Pabrai's Investment Checklist
Pabrai says that, "And what was stunning to me is that in almost all cases where I could figure out the reason for the loss, it was very apparent before the investment was made, number one...