10 Comments
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DIY Investor's avatar

Position sizing makes all the difference. Thanks, Kevin!

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mark's avatar

can you provide link to reference 1?

It is missing.

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Kevin's avatar

It's the video. The interview with mohnish pabrai...

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Aarush Sawant's avatar

Great post, the best part was about the conviction, I personally invested in a great business a year ago and the valuation was also good, but after few months I sold 100% stake cause I realised that I am not understanding the business properly.

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jefke's avatar

Bet size is important but Pabrai's anecdote is him being fooled by randomness.

There's no signal in a losing or winning streak in Blackjack, and thus increasing or decreasing bet size based on this does not increase your EV

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Aarush Sawant's avatar

Great post, the best part was about the conviction, I personally invested in a great business a year ago and the valuation was also good, but after few months I sold 100% stake cause I realised that I am not understanding the business properly.

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Aarush Sawant's avatar

Great post, the best part was about the conviction, I personally invested in a great business a year ago and the valuation was also good, but after few months I sold 100% stake cause I realised that I am not understanding the business properly.

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User's avatar
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Aarush Sawant's avatar

Thanks for recommending but I have my own broker.

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Kevin's avatar

Hey Aarush, please disregard the 'broker message'. It comes from someone impersonating me. I have reported him.

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Aarush Sawant's avatar

Okay, thanks for informing.

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