The Ten Commandments of Investment Management
Chai with Pabrai
00:00
Making the Math Really Simple
For example, f i want a 20 % rate of return on this investment, i have to start discounting those future cash lovs at that 20 % rate. And so as i discount all those future cash lows and run those numbers, it will be very hard to get to one billion. So unless this is a fast growing funeral services operation,. It's not going to be ther clocking 20 % or ten % a year for 15 years. But once you start getting to, i single digits or double digits, generally speaking, the mat doesn't work so well. "It's just difficult in business to have that much of a runway without people coming in to take your mot away"
Transcript
Play full episode
