Dan Loeb: Investors, Like Athletes, Need To Review Their ‘Game Films’

In his latest interview with Prime Quadrant, Dan Loeb discusses one of the most important things we can do as investors. Here’s an excerpt from the interview:

I think one of the most important things we can do as investors is understand our own and others thought processes, mental frameworks, and biases, that we have.

That to me is like I think it’s the same as like an athlete reviewing game films. We always go back after a mistake is made, or even when one isn’t made.

Just like okay what did we do right? What did we do wrong? How are we going to not do that next time.

So, and a lot of that comes down not to gee we got that… it’s rarely we got the EBITDA calculation wrong, or we got you know some number, or if we did it isn’t because of a mathematical error, it was because our biases led us in the wrong direction.

So I spend a lot of time thinking about kind of psychology, mindset, all the kind of stuff we were just talking about.

You can watch the entire interview here:

https://youtu.be/MLdkgD2fwjA?t=257