Mohnish Pabrai's Q&A session with Dakshana Scholars at JNV Lucknow on July 14, 2024

Apr 7, 2025

Delve into the captivating insights of classical economists like Adam Smith and David Ricardo. Discover the success story of India’s shrimp industry and analyze India's agricultural policy contradictions compared to the USA. Explore the dynamics of giving, takers, and matchers, and the significance of altruism. Learn about the power of compounding and the Rule of 72 for wealth growth. Finally, hear about the transformative impact of philanthropy on underprivileged students and the importance of focused educational efforts.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

INSIGHT

Free Trade and Competitive Advantage

Adam Smith and David Ricardo theorized that countries become wealthy by focusing on their competitive advantage and engaging in free trade.
India should focus on its natural strengths like shrimp farming and import goods like cars from Japan.

ANECDOTE

Shrimp Farming Success Story

Andhra Pradesh farmers revolutionized shrimp farming and became wealthy without government subsidies.
They outcompeted Thailand's shrimp industry, showing a real example of competitive advantage.

ADVICE

Advocate for Free Market Farming

Remove restrictions like duties and tariffs to allow industries to grow naturally where they have advantage.
Let large-scale farming use technology and robotics to become globally competitive.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

The Power Broker

Robert Moses and the Fall of New York

Robert Caro

This book is a monumental biography of Robert Moses, who was the single most powerful man in New York City and State during his time. It explores how Moses accumulated and wielded power, shaping the city through his public works projects, including highways, bridges, and parks. The book delves into Moses's early life, his idealistic beginnings, and his transformation into a powerful figure who dominated New York's politics without ever being elected. It also highlights the social and environmental impacts of his projects and his eventual fall from power. The biography is renowned for its detailed and nuanced portrayal of power dynamics in urban politics[2][4][5].

The Wealth of Nations

Adam Smith

Published in 1776, 'The Wealth of Nations' is Adam Smith's magnum opus that laid the groundwork for modern economics. The book critiques mercantilist economic theories and introduces the concept of the 'invisible hand,' which describes how individual self-interest leads to societal benefit. It emphasizes the division of labor, the accumulation of capital, and the importance of free markets. Smith argues that a nation's wealth is not measured by its gold and silver reserves but by the stream of goods and services it produces. The book also outlines the core functions of government, such as maintaining defense, enforcing civil law, and promoting education, while advocating for limited government intervention in market activities.

On the Principles of Political Economy and Taxation

David Ricardo

Published in 1817, 'On the Principles of Political Economy and Taxation' is David Ricardo's most well-known work. It outlines his labor theory of value, which posits that the value of a good is determined by the labor required to produce it. The book also introduces the concept of comparative advantage, arguing that countries benefit from international trade by focusing on goods that require fewer resources to produce. Ricardo critiques earlier economists like Adam Smith and discusses the impact of taxation, machinery, and other economic factors on different classes of society. His work has had a lasting influence on economic theory and policy, particularly in the areas of free trade and the distribution of wealth among landlords, capitalists, and workers.