MOHNISH PABRAI 00:00
The second commandment thou shall not have an investment team. So again, you know, investment management is not a team sport, it’s really designed to be an individual pursuit.
And an investing team is in many ways an oxymoron. And one of the – you know, there are many reasons why it’s an oxymoron but one of the basic reasons is that any two humans are going to have differing circles of competence.
And so if I were to have, for example, an analyst on my team and that analyst was very bright and he or she came up with some investment ideas. I may reject them simply because I have a different circle of competence and so which is really not doing justice to the analyst if you will.
And the second is that we don't have – we don’t need that many stocks in our portfolio and so in a year we have plenty of time to research many stocks and to find, you know, two, three or four of them that kind of fit the bill if you will.
So they should – other thing is the investment analysis process is really the fun part of the job, so you really don't want to delegating the fun part because I wouldn't know what you’d be doing then, if you weren’t kind of analysing investment, you know, that’s the most fun part.
2nd Commandment of Investment Management: "Thou shall not have an investing team."
You must have independent thinking.
You don't have to be active and invest all the time, but keep learning.
Learn and enjoy the process of investing, the research it's really the fun part.
If you hate it, just invest in index funds then.