I was listening to We Study Billionaires and their latest interview with Mohnish Pabrai. In there, he outlined the 4 filters he uses when looking at ideas to optimize his Return on Time. The goal is to find a reason to say no as fast as possible so here is how he gets there
1) Find a Write up on Value Investors Club- There is a higher quality filter here and it is something he can read quickly to get up to speed.
2) Read Managment Letters, Only if Written by Managment-Stay away from letters put together by PR firms and only focus on the companies where the CEO writes a straightforward letter.
3) Q&A from Transcripts- Wants to see how management reacts when they are put on the spot.
4) Moves Onto Company Filings - If the company passes all of the filters above then he moves on to the company documents
Would love to hear everyone's thoughts on this. I really like the VIC filter, it probably saves him so much time.
Submitted May 13, 2023 at 08:12AM by wallstgunslinger https://ift.tt/H51fBGS
