Tag Archive

In his book – The Dhandho Investor, Mohnish Pabrai explains how fear and greed are fundamental to human behavior and significantly influence stock market pricing. Extreme fear can cause irrational actions, likened to a panic in a crowded theater where everyone rushes for the exits, leading to a market crash. … Read More

In his book – The Dhando Investor, Mohnish Pabrai advocates investing like playing blackjack – bet heavily when the odds are overwhelmingly in your favor. His “Dhandho” approach involves finding a temporarily distressed but good business with a durable moat, within your circle of competence. Determine its intrinsic value 2-3 years … Read More

During this interview with My First Million, Mohnish Pabrai discusses Warren Buffett’s investment strategy and performance, particularly highlighting a key point from Buffett’s 2023 letter to shareholders. Buffett noted that over his 58-year tenure at Berkshire Hathaway, only 12 investment decisions significantly impacted the company’s success. Despite making hundreds of … Read More

In this interview with My First Million, Mohnish Pabrai emphasizes that patience is the key trait for successful investing. He illustrates this by referencing a Seinfeld episode where Elaine’s boyfriend is content staring at the seat back in front of him during a flight, leading to their breakup. Pabrai suggests … Read More

During this interview with The Investor’s Podcast, Mohnish Pabrai discusses the importance of maintaining a spreadsheet to track the intrinsic value of his investments. He emphasizes that while market values fluctuate, understanding the true value of a business is crucial, especially during volatile times like the financial crisis. Pabrai highlights … Read More

During his recent interview with The Investor’s Podcast, Mohnish Pabrai discusses his passion for bridge and shares a story about an investor who shorted Berkshire Hathaway, missing out on significant gains. The investor later regretted not investing in high-yield U.S. treasuries in the early ’80s. Pabrai reflects on missed opportunities … Read More

In this presentation with students at the JNV Kottayam, Mohnish Pabrai shares Warren Buffett’s insights on how he judges people. Despite perception, Buffett doesn’t quickly assess if someone is good or bad. He explained that in a party with 100 guests, he can only identify about eight individuals in five … Read More

In this interview with YPO’s Mosaic Chapter, Mohnish Pabrai discusses the concept of cloning good ideas in business and investing. He learned early on about the power of copying successful strategies. He came across a book by Tom Peters who argued that humans are bad at copying successful ideas. In … Read More

In this presentation at Columbia Business School, Mohnish Pabrai explains how historical crashes can create long periods of low stock prices, discouraging investors. However, these periods can also be the best times to invest for long-term gains. He believes there are always opportunities somewhere in the world, even if the … Read More

In this interview at the SumZero Virtual Investor Summit 2024, Mohnish Pabrai discussed his disappointment with the current political gridlock in Congress, and choice of political candidates. He also highlighted the significant potential for the U.S if a more functional government existed. Here’s an excerpt from the interview: Pabrai: I … Read More

In this Q&A session with the London School of Economics, Mohnish Pabrai discusses his two step investment process for finding opportunities with significant upside potential. Here’s an excerpt from the presentation: Pabrai: Yeah I mean I think the the very first question I ask myself when I run into some … Read More

During this discussion, Mohnish Pabrai explains how Warren Buffett’s Japanese bets have yielded infinite returns based on the way he structured the deal. Buffett didn’t use any of his own capital for this investment. Instead he borrowed yen at a low interest rate in Japan, and over time, the subsequent … Read More

In this interview with Morningstar, Mohnish Pabrai discusses Charlie Munger’s philosophy of focusing on continuous improvement and not dwelling on past achievements. Here’s an excerpt from the interview: Pabrai: So what I found is that all of his (Munger’s) energies were focused on taking the next step forward. And they … Read More

In this presentation at FLAME University, Mohnish Pabrai explains why selling good businesses is much harder than buying them, especially when they’ve experienced significant gains. He believes he’s made mistakes in the past by selling out too early due to perceived high valuations, ultimately missing out on further growth. Here’s … Read More

In this Q&A session with Oxford University, Mohnish Pabrai discusses the forgiving nature of the investment business despite frequent mistakes. His key points include: High Error Rates: Even the best investors are wrong often Asymmetrical Rewards: One home run success can outweigh many smaller failures Acceptable Error Margin: Mistakes like … Read More

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