MICHEL PIREU: Sometimes investment is like a poker game, you have to play your cards right
Most businesses are driven by three or four factors that may control 80% of the outcome — those are the cards to watch
“If you are an investor, to be successful a couple of things have to happen,” says Monish Pabrai, founder of the Pabrai investment funds.
“Number one, in most businesses the results are driven by three or four factors that control, let’s say 80% of the outcome and most entrepreneurs are honed in on those three or four factors. They understand those factors and they focus on those factors. If the factors you focus on do not match the factors that the guy running the business is focused on, you’ve not understood the business and there’s a problem.”