TIP517: Mohnish Pabrai's Dhandho Investment Framework
We Study Billionaires - The Investor’s Podcast Network
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Investing in a Quality Business
In the first year, the stock in the business might turn against you, but you may still be right that the company is overvalued./nIn giving yourself that three years to invest in a business is a lot of times enough to allow the market to realize the true value of that company./nIf it doesn't converge and the stock hasn't moved very much during that time, then you may decide that you were wrong on your thesis and you're going to sell out and allocate to a better idea because there's always that opportunity cost./nYou can only put a certain dollar in one place at a time without leverage, so you want to allocate your capital wisely and maybe reconsider the businesses that aren't performing as well as you anticipated.
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