Mohnish Pabrai's Session with Columbia Business School (CSIMA) on February 14, 2024
Mar 22, 2024
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Mohnish Pabrai, an investor and fund manager, shares insights on Berkshire's decisions, See’s Candies, and the evolution of his investment philosophy. He discusses evaluating businesses, the auto dealership industry, coal mines, and the importance of starting the investment journey early.
Focus on deep understanding of select opportunities for higher returns.
Entrepreneurs demonstrate unwavering commitment to their ventures for success.
Start investing early, focusing on familiar industries for enhanced decision-making skills.
Deep dives
Focus on Selected Opportunities
It is recommended to delve deeply into a few chosen opportunities rather than spreading efforts thinly across many. Concentrating on specific rabbit holes allows for a nuanced understanding and higher potential returns. By immersing in select areas, like the Chinese couple opening a restaurant, high levels of involvement can lead to success.
Learning from Entrepreneurs
Entrepreneurs often go all-in with their ventures, investing not just all their money but also all their time. This level of commitment doesn't deter them; on the contrary, it drives them to succeed. Entrepreneurs, like those opening a Chinese restaurant, epitomize full devotion to their enterprises with unmatched determination.
Balancing Breadth and Depth
As a budding investor, balancing breadth and depth of understanding is crucial. Starting with products and services you personally use provides a solid foundation for evaluating investment opportunities. Exploring familiar brands and industries can offer valuable insights and enhance decision-making skills.
Timeframes for Investing
In investment, the timeframe for returns varies based on individual circumstances, such as whether managing personal or other people's funds. Ideally, prolonged investment horizons are beneficial for capitalizing on long-term opportunities. Long-lasting investments yield continuous returns over decades, creating sustained value.
Right Time to Venture Solo
Embarking on independent investing is encouraged early on in the learning journey. Initiating personal investment endeavors sooner allows for extended learning periods, paving the way for acquiring valuable experience. The vast knowledge base available from seasoned investors facilitates self-directed learning and growth in the field.
Mohnish Pabrai's Session with Columbia Business School (CSIMA) on February 14, 2024.
(00:00:00) - Introduction (00:01:28) - Berkshire's 12 great decisions (00:04:52) - Burlington Northern Railways (00:07:49) - See’s Candies: Berkshire’s big home run! (00:12:48) - Evolution of my investment philosophy (00:16:04) - Berkshire without Charlie (00:20:06) - Be a harsh grader (00:21:49) - Auto dealership business; OEMs vs. EVs (00:25:38) - Evaluating a business (00:28:50) - Met-coal (00:31:18) - IPSCO vs. CONSOL (00:39:06) - Circle of competence (00:41:08) - Diversification of portfolio (00:44:12) - Start your journey early The contents of this website are for educational and entertainment purposes only, and do not purport to be, and are not intended to be, financial, legal, accounting, tax or investment advice. Investments or strategies that are discussed may not be suitable for you, do not take into account your particular investment objectives, financial situation or needs and are not intended to provide investment advice or recommendations appropriate for you. Before making any investment or trade, consider whether it is suitable for you and consider seeking advice from your own financial or investment adviser.
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