My friend Ravi was home for lunch on weekend. After food, as we went out for a stroll, he told me a story of a famous motivational speaker.
At a huge gathering once, the speaker proclaimed, “The best years of my life were spent in the arms of a woman, who wasn’t my wife.”
The audience was in a state of shock and silence at thus revelation, especially because it was coming from someone they looked up to.
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Vishal Kataria says
I’m guilty of this to an extent. I copy a friend’s investing strategy. If it works for him, it works for me. If it doesn’t work for him, it fails for me too.
The biggest takeaway for me from this post is to analyze why someone worth copying does what they do. Then find patterns and turn it into a heuristic.
I like Mohnish’ statement of “limit to 2-3 ideas per year”. We bring our own biases to every decision. If you have to discern and eliminate your biases 3 times a year that seems very doable. The more decisions the less you will be able to. That’s why almost all traders fail, and even most investors. The average holding period of a NYSE stock is around 8 months. A recipe for disaster.
Shiva S says
I liked the article and has been great help. Also as per Mohnish Pabrai , it is important to copy highest conviction ideas (biggest best) only. Please see comments starting @ 56:18 minutes in this video.