Why A Checklist Is An Investor’s Best Friend [Part One]

Whenever Mohnish Pabrai discovers a potential investment opportunity he sets out, just as all other investors do, to study the company and assess the potential risk and reward.

As part of this assessment, Pabrai uses a checklist with more than 100 criteria to assess the opportunity on offer. This method was born in the aviation industry and covered in depth by Atul Gawande in his book, Checklist Manifesto.

Transferable checklist

Checklist Manifesto doesn't really have anything to do with investing. The book is an essential primer on complexity in medicine. Doctors often overlook or omit steps in the multitude of tasks they have to perform every day and...