Uploaded June 2026 | Updated September 2026, 1 week ago
During the dot-com boom, many investors rotated out of established companies like Berkshire Hathaway to chase high-growth tech stocks, a shift driven by cognitive biases and FOMO rather than fundamental analysis.
Mohnish Pabrai examines the behavioral patterns that lead investors to abandon undervalued assets during periods of underperformance and chase momentum in overvalued sectors. He explores how recognizing these psychological patterns can help you maintain conviction in quality holdings and avoid expensive mistakes.
During the dot-com boom, many investors rotated out of established companies like Berkshire Hathaway to chase high-growth tech stocks, a shift driven by cognitive biases and FOMO rather than fundamental analysis.
Mohnish Pabrai examines the behavioral patterns that lead investors to abandon undervalued assets during periods of underperformance and chase momentum in overvalued sectors. He explores how recognizing these psychological patterns can help you maintain conviction in quality holdings and avoid expensive mistakes.
