A prominent value investor, Mohnish Pabrai is the Founder and Managing Partner of Pabrai Investments Funds. He says wealth creation in financial markets should be based on ‘10 Basic Commandments of Investment Management’, a list of rules he follows in order to ensure capital protection and growth.
10 Basic Commandments of Investment Management
Commandment One: Thou shall not skim off the top
Commandment Two: Thou shall not have an investment team
Commandment Three: Thou shall accept I shall be wrong one-third of the time
Commandment Four: Thou shall look for hidden 1x price-earnings stocks
Commandment Five: Thou shall never use Excel
Commandment Six: Thou shall always have a rope to climb out of the deepest well
Commandment Seven: Thou shall be singularly focused like Arjuna
Commandment Eight: Thou shall never short a stock
Commandment Nine: Thou shall not be leveraged. Neither a long-term lender nor a short-term borrower be
Commandment Ten: Thou shall be a shameless cloner