Bakshi: Comparing Multi-Year Intervals Reveals Business Changes Missed in Quarterly Statements
Sanjay Bakshi · #3 Sanjay Bakshi: Why Mental Models · Sep 18, 2015 · at 38:59
Investor and professor Sanjay Bakshi explains to Shane Parrish how applying the 'boiling frog' mental model helps investors detect slow structural changes in businesses.
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“If you look at a business, hugely value creating business, or a value destroying business, and if you look at the financial statements, or a quarterly period, you will miss a lot of the change, but if you put gaps in between, if you look at data five years ago, and today, you will see huge change, ah, and that tells you why you notice change, because you removed A lot of the columns. You removed a lot of the quarterly information.”
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