June 28, 2018

Mohnish Pabrai: The Yellowstone Factor In Investing

Yellowstone represents just one of the many ugly outlying events that have an extremely low probability of occurring, but that does not mean that the odds are zero or that they can be ignored. Even the most seemingly resilient businesses, by their very nature, are very fragile temporary creations — and it would take a lot less than Yellowstone’s eruption to wipe them out. The Yellowstone Factor alone implies that there isn’t a single business on the planet whose future is assured.

Minimizing downside risk is the first step toward being a successful investor. As Warren Buffett succinctly puts it:

Read more at https://acquirersmultiple.com/2018/06/mohnish-pabrai-the-yellowstone-factor-in-investing

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