When we look to make an investment, the greed part of the brain is turned on. A checklist is like a circuit breaker that helps prevent the brain from being able to flip that switch.

Mohnish Pabrai

Looking at many successful fund managers, one thing they have in common would be this ‘checklist’. Be it superinvestors or even local value fund managers, they would have some form of checklist when assess the quality of the company. Is the company buying back shares? Is the company in a dying industry? Yeoman 3-Rights etc. Checklists aren’t proven to be only successful with investing but in many other fields where mistakes can be easily made due to human error. Pabrai made an analogy to pilots where they would go through a detailed checklist before flying. Using this checklist, it helps one prevent missing a certain procedure that could actually result in ...