Mohnish Pabrai: “Intensive Stock Research Can Be Injurious to Financial Health” | Talks at Google
Mohnish Pabrai: “Intensive Stock Research Can Be Injurious to Financial Health” | Talks at Google
[youtube https://www.youtube.com/watch?v=kNAuELYN5X4?rel=0&w=480&h=320]
In this talk, Mohnish Pabrai discusses how the plethora of deeply entrenched biases and flawed evolutionary brain wiring makes us prone to make plenty of mistakes when picking stocks. Specifically, the more time we spend analyzing a given business, the more likely we are to like it and invest in it. But if we don’t spend time studying a business, how are we expected to understand its prospects and likely future? This strong commitment bias is an important reason why most investment managers have trouble beating the index. Mohnish will lay out the origins of this bias problem and a few hacks to get around it.
Moderated by Saurabh Madaan.
