Category Archive

In this interview with Guy Spier, Mohnish Pabrai talks about the importance of developing unique insights in investing to gain an edge. He uses Warren Buffett’s investments as examples, highlighting how Buffett’s deep understanding of businesses like furniture (through Nebraska Furniture Mart) and candy (Sees Candy) led him to successful … Read More

During his Q&A session at Clemson University, Mohnish Pabrai discussed his approach to diversification which contrasts with the traditional view that spreading investments across a variety of assets reduces risk. Pabrai argues that diversification can be overrated, and that owning a few high-quality businesses can provide sufficient protection against market … Read More

In this interview with The Value Perspective, Mohnish Pabrai explains why investors shouldn’t blindly chase diversification. They should focus on understanding a few companies well instead of spreading themselves thin across many that they don’t fully understand. True risk reduction comes from deep knowledge within your “circle of competence”. Key … Read More

During this Q&A session at Boston College, Mohnish Pabrai discussed how to know when your investment is wrong. Here’s an excerpt from the session: Pabrai: So first of all I think we know that we’re going to be wrong half or more. You know so mistakes are going to be … Read More

During this interview with CNBC, Mohnish Pabrai discusses the two key questions investors should ask before making an investment. Here’s an excerpt from the interview: Pabrai: Basically we want to not be thinking about buying stocks, what we’re buying is fractional interests in businesses. And basically when we are buying … Read More

In this interview with CNBC, Mohnish Pabrai discusses some of the best lessons he learned from Charlie Munger. Munger emphasized the importance of concentration and big bets in investing. He believed that great investment ideas are rare and should be acted upon decisively when they arise. Pabrai advises investors to … Read More

During his recent interview with The Value Perspective, Mohnish Pabrai argues that long-term wealth creation requires holding onto great businesses beyond the point at which they have reached their intrinsic value. He cites Ben Graham’s example of Geico, which Graham owned for many decades and which significantly outperformed the S&P. … Read More

During this presentation with YPO Waterloo Austin, Mohnish Pabrai says most humans are not able to stay with their investing program, and are too smart for their own good. Here’s an excerpt from the presentation: Charlie Munger, Warren Buffet’s partner. One of his best quotes is never interrupt compounding unnecessarily. … Read More

During this Q&A session at the University of Notre Dame, Mohnish Pabrai recommends selling a business only when it is obviously overvalued. Even if a business looks to be overvalued by 20-30%, it is worth giving it the benefit of the doubt, as there are many unknowns that could work … Read More

In this presentation to Boston College and Harvard Business School, Mohnish Pabrai explains why as an investor you don’t need to accurately calculate intrinsic value. The primary question to ask about some businesses is whether they are continually improving. If the business is better today compared to one, two, or … Read More

During this Q&A session with Harvard Business School, Mohnish Pabrai emphasizes that formal education isn’t necessary for learning about successful investing. He sees value investing as a niche, allowing him to discover market inefficiencies and mispriced businesses. He compares this to a scenario where two economists ignore a visible $100 … Read More

In his book The Dhando Investor, Mohnish Pabrai provides seven questions that investors must answer before entering the stock market chakravyuh. Here’s an excerpt from the book: Abhimanyu’s dilemma on that 13th day of battle has close parallels to the decisions confronting equity investors every day. The decision to enter, … Read More

In this interview with Meb Faber, Mohnish Pabrai discussed the power of high conviction bets. Here’s an excerpt from the interview: Pabrai: Well there’s several that come to mind. The first one that comes to mind would be investing in a place like Turkey. I’ve been going there for about … Read More

In his book, The Dhando Investor, Mohnish Pabrai discusses the 3-year rule for cutting losses. Here’s an excerpt from the book: When the stock was at $5 in 2003, all Pabrai Funds hoped to accomplish after two to three years was simply break-even or hopefully exit with a small loss. … Read More

In this presentation and Q&A at MDI, Gurgaon, Mohnish Pabrai discusses the importance of having someone to talk to about your investments. Here’s an excerpt from the presentation: Pabrai: Yeah, that’s a great question. I had a conversation a few years back with Charlie Munger, and he casually mentioned that … Read More

In his article titled – On Avoiding Enron-itis!, Mohnish Pabrai discussed his starting point in assessing any business. Here’s an excerpt from the article: When I am beginning to look at a company, my starting point is Item 1 in the 10-K which describes the business. If this description does … Read More

During this interview with Weekly On Stocks, Mohnish Pabrai discusses when ‘never-sell’ is the best investing strategy. Here’s an excerpt from the interview: Pabrai: One of the biggest mistakes I have made many, many times in my investing career is I have repeatedly sold very good businesses because they appeared … Read More

During this interview with Meb Faber, Mohnish Pabrai discusses the mindset that will allow investors to never sell and sleep well. This strategy was successfully used by the Walton family, the founders at Google, and the founder of IKEA. Here’s an excerpt from the interview: Pabrai: I think the mental … Read More

In this presentation to the Indian School of Business, Mohnish Pabrai discusses one example of why micro trumps macro. Here’s an excerpt from the presentation: Pabrai: Yeah, so actually for the most part you should ignore macro. Going back to my example of the McDonald’s franchise and Ford dealership, etc. I … Read More

During this presentation at MDI, Gurgaon, Mohnish Pabrai explained why investors should focus on no-brainers. Here’s an excerpt from the presentation: Pabrai: Well that’s a good question. So the good news is that there is the too hard part. One time I visited Omaha, Warren gave me a tour of … Read More