3min chapter

Chai with Pabrai cover image

Mohnish Pabrai’s Q&A with members of The Babson College Fund (Babson College Students)– Feb 9, 2021

Chai with Pabrai

CHAPTER

The Importance of Diversification in Investing

The typical entrepreneur is almost naturally driven towards extreme concentration, right? 90% of assets in one particular business. Charlie Munger and Warren Buffett both believe that if you understand a few businesses well, it is madness to put any money in your 25th or your 30th best idea. I have told my investors that I won't put more than 10% at cost into a single idea.

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