Michel Pireu Columnist

Extracts from a Mohnish Pabrai interview at SumZero: 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 of 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 on it. 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. If we look at the US with its 3,500-something publicly traded businesses, an investment manager can really not drill down on more than a few dozen of them every year. So they have to make a decision relatively quickly on w...

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