We Study Billionaires - The Investor’s Podcast Network

TIP550: Masterclass w/ Mohnish Pabrai

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May 7, 2023

Mohnish Pabrai, a legendary investor and philanthropist, shares his fascinating investment framework. He discusses why the Turkish stock market is appealing and reveals his four-step method for analyzing annual reports. Pabrai dives into specific stocks like Alibaba and Constellation Software, sharing insights on their potential. He emphasizes the importance of maintaining objectivity and aligning executive incentives with shareholder interests. Throughout, he underscores the value of honesty in personal and professional relationships, creating a captivating discussion.

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ADVICE

Combating Bias

Be aware of your biases when processing information from people you admire.
Reread books like Munger's essays and Cialdini's work to understand these pitfalls.

INSIGHT

Turkish Market Inefficiency

The Turkish stock market's inefficiency presents opportunities due to short-term trading by retail investors.
This creates mispricing similar to the US in the 60s and 70s or India in the early 90s.

ADVICE

Efficient Company Research

Start by checking Value Investors Club and management letters when researching companies.
Then, review Q&A transcripts and only read full reports if the company remains promising.

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Poor Charlie's Almanack

The Essential Wit and Wisdom of Charles T. Munger

Charles T. Munger

Peter D. Kaufman

Originally published in 2005, Poor Charlie's Almanack is a collection of eleven talks delivered by Charles T. Munger between 1986 and 2007. Edited by Peter D. Kaufman, this book draws on Munger's extensive knowledge across various fields to provide a framework for rational and rigorous approaches to life, learning, and decision-making. It is renowned for its sharp wit and rhetorical flair, making it an essential read for investors, entrepreneurs, and anyone seeking to enhance their wisdom and critical thinking skills.

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