Mohnish Pabrai: Investors Should Ignore The ‘Mickey Mouse’ Macro Noise

In his recent interview with Lauren Templeton, Mohnish Pabrai explained why investors should ignore the ‘Mickey Mouse’ macro noise. Here’s an excerpt from the interview:

Pabrai: What I think is useful for investors is to ignore the noise. All this macro stuff going on is really hard to forecast and predict. I mean if you just go back three years I mean who would have thought we’d have a pandemic, and who would have thought that Russia is going to invade Ukraine, and all this huge stimulus causing all this inflation.

All these things were not on anyone’s radar and here we are. So I think the macro stuff is really hard to predict or have any kind of a basis for… at the same time if you look at for example a business like (inaudible) or Starbucks or Microsoft, they are going to transcend all this.

All this stuff is Mickey Mouse noise for Starbucks. What matters with Starbucks is do they still delight their customers? And those… the micro aspects of what happens around the business trump whatever macro stuff is going on. So the important thing always I think is to focus on specific businesses within your competence and so.

You can listen to the entire interview here: