Mohnish Pabrai, a seasoned hedge fund manager and author, shares captivating insights on investment strategies and life reflections. He humorously discusses aging while emphasizing that it's never too late to innovate in life and investing. Pabrai elaborates on the Dakshana Foundation's mission to enhance education and the game of bridge as a tool for strategic thinking. He also dives into the power of 'cloning' successful investing models and the benefits of concentrated portfolios, likening these lessons to real-life experiences with prominent investors.
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Move to Austin
Mohnish Pabrai moved from California to Austin, Texas due to wildfires and high state income taxes.
California's tax system doesn't differentiate between long-term gains and ordinary income, leading to a significant tax burden.
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Library Design
Mohnish Pabrai's library, featured in the Wall Street Journal, was inspired by an author's library in New Delhi.
The unique design integrates his windowless bedroom, allowing for a calming blue color scheme and marble accents.
question_answer ANECDOTE
House Offer
After a Wall Street Journal feature, a couple offered to buy Pabrai's home for a significantly inflated price.
Pabrai countered with an even higher price and requested their identities and a written explanation, which they didn't provide, ultimately declining their substantial offer.
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Monish Pabrai's "The Dhandho Investor" presents a unique approach to value investing, emphasizing the principles of patience, discipline, and risk aversion. The book draws inspiration from the Indian investment philosophy of "Dhandho," which translates to "the business of playing a game well." Pabrai advocates for a conservative investment strategy, focusing on undervalued companies with strong fundamentals and a wide margin of safety. He emphasizes the importance of thorough due diligence, long-term holding periods, and avoiding speculative investments. The book provides practical guidance and real-world examples to illustrate the principles of Dhandho investing, making it a valuable resource for both novice and experienced investors.
Made In America
John Huey
Sam Walton
In this autobiography, Sam Walton shares his life story and business philosophy, detailing how he transformed a small dime store into the global retail giant Walmart. The book is rich with anecdotes and insights into Walton's leadership style, entrepreneurial spirit, and the 'rules of the road' that guided him on both Main Street and Wall Street. It highlights his humility, frugality, and commitment to customer service, as well as the challenges and setbacks he faced along the way. The narrative provides a deep understanding of Walmart's culture and foundational principles, making it a valuable resource for entrepreneurs and business leaders.
Mohnish Pabrai's Interview at the Capital Compounders Show on February 25, 2025.
(00:00:00) - Introduction (00:00:53) - Move to Austin, Texas (00:09:52) - Age is just a number (00:11:27) - The Dakshana Foundation: A math game (00:15:57) - My 4 games – Bridge, Dakshana, Compounding & Golf (00:17:11) - Bridge with Warren & Charlie (00:21:46) - Bridge teaches probabilistic thinking (00:23:48) - Mosaic: Perspectives of Investing (00:24:44) - Cloning is the best mental model: Sam Walton & Bill Gates (00:31:29) - Sam Walton & Walmart (00:33:23) - Compounding (00:35:16) - The crash of Nifty-Fifty in 1973-74; Walmart (00:37:02) - Fiat Chrysler (00:38:09) - The Waltons' ownership in Walmart (00:42:18) - Frontline & Reysas (00:46:11) - Portfolio concentration; Steve Ballmer at Microsoft (00:49:39) - Uber Cannibals 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.
Chai with Pabrai 
