Chai with Pabrai Mohnish Pabrai’s Q&A with London School of Economics on January 18, 2023
6 snips
Feb 21, 2023 
Mohnish Pabrai, founder of Pabrai Investments and author of The Dhandho Investor, shares invaluable insights at the London School of Economics. He emphasizes the importance of durable moats in investing, discussing iconic companies like Coca-Cola and Apple. Pabrai advocates for patience as a key asset and explores his quest for '100 baggers.' He also shares lessons from Charlie Munger while encouraging independent thinking and simplicity in investment strategies, urging listeners to focus on understanding businesses rather than relying on complicated financial models.
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Capitalism Erodes Moats Over Time
- Capitalism's nature tends to erode competitive moats as rivals enter profitable markets.
- True durable moats are rare exceptions, with few businesses surviving and thriving for centuries.
Use Patience As Your Edge
- The strongest investment edge is a long-term time horizon, beyond typical 1-3 year views.
- Holding great businesses for decades leverages compounding and outperforms short-term focus.
Munger's Bell Ridge Oil Missed Opportunity
- Charlie Munger missed a 30X return on Bell Ridge Oil by not having cash ready to buy more shares.
- This example shows deep value opportunities arise rarely but can yield enormous gains if seized.
