Chai with Pabrai Mohnish Pabrai's Guest Lecture at Microsoft on November 15, 2024
7 snips
Mar 6, 2025 
Mohnish Pabrai, Founder of Pabrai Investments and author, shares insights from his investment journey and the principles of value investing. He discusses the evolving landscape of AI and how established companies can thrive amidst change. Pabrai delves into his experiences with Warren Buffett and the significance of mentorship. He also emphasizes the importance of passion in life and philanthropy, highlighting his work with the Dakshana Foundation to support underprivileged students. His reflections on trust and personal growth add a thoughtful dimension to the conversation.
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Value and Growth Are One
- All intelligent investing is value investing; it's about comparing discounted future cash flows to price paid. - Growth or value labels don't matter; investing success depends on the cash flow equation's accuracy.
Cash Flow Certainty Key Challenge
- Estimating future cash flows precisely is the core difficulty in value investing, not the concept itself. - The more uncertain the cash flows, especially over long horizons, the more investing moves into speculation.
Ipsco Steel Investment Success
- Mohnish Pabrai invested $4 million in a steel company Ipsco, certain about $30 cash flow in two years and $15 on balance sheet. - The stock doubled in 15 months, then a buyout offer took it to $155, yielding a very profitable exit.
