4/28/2024 0 Comments My stock checklistExamine all your mistakes that led to permanent loss of capital – the plane crashed. margin of safety, moats, simple businesses. Start with the stuff we’ve learned from Graham, Buffet, Munger, Klarman, Fisher, Templeton etc. “Investing and the checklist. Not Rocket Science. And what we’re starting to institute at our firm is for every function, including the investment function, to have a daily checklist.” Bruce Berkowitz This is a pilot’s checklist for a certain type of plane. “We’re just starting a process now, it’s funny I have it in my hand. "Why are checklists so effective? We think we're very smart we take shortcuts, especially in investing. We get euphoric about all the money we're going to make, and we are just a mix of rationality and emotions. We see a great undervalued business, we ask ourselves a bunch of questions, but we don't go through a systematic process of looking at every nook and cranny to figure out whether we got it right or not." Mohnish Pabrai But if you’ve got a full list of tools, and go through them in your mind, checklist-style, you will find a lot of answers that you won’t find any other way.” Charlie Munger You’ve got to use those tools checklist-style, because you’ll miss a lot if you just hope that the right tool is going to pop up unaided whenever you need it. “The only antidote for being an absolute klutz due to the presence of a man with a hammer syndrome is to have a full kit of tools. "Boeing just doesn't sit around in a room and come up with the checklist for take-offs. That has been created over 60-70 years of failures that have caused things to make the checklist. Our investment checklist was designed the same way. I looked at mistakes I made since the time I invested and I looked at mistakes that other people made that I respect like Warren Buffett and Charlie Munger, LongLeaf Partners and so on. When I look at mistakes, I would figure out what was the reason the investment lost money and was that reason visible at the outset? Was it visible before the investment was made. And, in most cases it's extremely obvious." Mohnish Pabrai “Before I make the final decision to buy any stock, I turn to my checklist in a last-ditch effort to prevent my unreliable brain from overlooking any potential warning sign that I might have missed.” Guy Spier Any other mode of operation will cause him to miss much that is important.” Charlie Munger “It is also essential for a thinking man to assemble his skills into a checklist that he routinely uses. "Charlie is possibly without peer when it comes to the checklist of atypical investment factors he considers and his deep fluency in the diverse disciplines from which they are drawn." Peter Kaufman "A checklist is no substitute for thinking." Warren Buffett "Checklists seem able to defend anyone, even the experienced, against failure in many more tasks than we realised." Atul Gawande
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