In his recent interview on the RWH Podcast, François Rochon explains why you should write down your three biggest mistakes every year. Here’s an excerpt from the interview:
Rochon: Well, I think it keeps me humble because you don’t have to search very hard to find mistakes you’ve made. But having this yearly podium of three mistakes, it makes me think usually in January at the end of the previous year to look up what would I choose the three best mistake of the year.
It forces you to go back and pass decision both in things you did purchase and the ones you did not purchase. I think having this section in the annual letter every year, I think it builds kind of a process of always trying to learn from your past decisions. And I think looking at companies that you didn’t buy.
Let’s hope that by studying those and to the example, a very good example of back stepping in it, you want to be sure that in the future we don’t make the same mistakes.
So perhaps let’s say for instance there’s a little amount today which I think is a great company. But the p ratio is a little high. Makes me think perhaps I should learn from the past mistakes and perhaps pay a higher price than I would like to.
And I hope I can always improve and become a better investor all the time by focusing on those mistakes, but also to learn from those mistakes and try not to repeat them too often.
You can watch the entire discussion here:
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