Presentation and Q&A at FLAME University on December 25, 2023
Feb 12, 2024
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Mohnish Pabrai, investor and presenter at Flame University, discusses various investment topics including valuations, portfolio sizing, investing in global markets, and his friendship with Charlie Munger and Warren Buffett.
Investing in Turkish airports and the growth potential of duty-free business.
Giving great businesses the benefit of the doubt and being patient with valuation concerns.
Dividends are not a major consideration when evaluating investments in businesses like FS and Coca-Cola Isaac.
Opportunities for value investors in India's growing mid-cap space and considering investments outside of India.
Deep dives
The appeal of Turkish airports and duty-free industry.
The speaker discusses investing in Turkish airports, emphasizing the appeal of almighty airport in Kazakhstan, which offers strong growth potential. He explains the dynamics of the duty-free business and how it contributes to the profitability of airports.
Investing in Varun Beverages and the challenge of selling great businesses
The speaker explains the decision-making process behind investing in Varun Beverages, highlighting the company's growth potential. He also discusses the difficulty of selling great businesses due to valuation concerns and advises giving such businesses a lot of rope.
The importance of giving businesses the benefit of the doubt
The speaker emphasizes the importance of giving great businesses the benefit of the doubt, even when they appear overvalued. He shares past regrets of selling businesses prematurely due to valuation concerns and advises investors to be patient and consider the long-term outlook.
Considering dividends and balance sheet leverage
The speaker explains that dividends are not a major consideration when evaluating investments in businesses like FS and Coca-Cola Isaac. He considers the balance sheet leverage but views it as noise due to the companies' ability to manage their debt through cash holdings and inflation-indexed revenues.
Turkey's wages and inflation
Turkey is experiencing the issue of wages not keeping up with inflation, leading to a declining population purchasing power and increased impoverishment.
Coca-Cola's stability in Turkey
Despite the wage and inflation issue in Turkey, Coca-Cola's earnings in the country have remained stable due to its diverse portfolio and ability to adjust prices and volumes.
Opportunities in the Indian market
India's growing population and economy present investment opportunities, especially for value investors willing to research and identify undervalued businesses in the mid-cap space.
The importance of staying informed
Staying informed about different markets and considering investments outside of India is advised, especially when opportunities arise in other markets with potential for mispriced bargains.
Mohnish Pabrai's Presentation and Q&A at FLAME University on December 25, 2023.
(00:00:00) - Introduction (00:04:52) - Coca-Cola Icecek vs. Varun Beverages (00:05:45) - Varun Beverages (00:12:47) - Anadolu Efes & Coca-Cola Icecek (00:28:07) - Investing in Turkiye (00:33:02) - Reysas (00:44:01) - Valuations matter - Microsoft (1999-2015) & Coca-Cola (1998-2011) (00:49:30) - Thou shall not have an investing team (00:54:08) - Portfolio sizing (00:55:31) - TAV Airports (01:03:28) - Investing in China (01:05:49) - Selling a stock; Varun Beverages (01:07:56) - Dividends: EFES (01:09:03) - Currency risk with Coca-Cola Icecek (01:11:47) - Evaluation of a business (01:16:23) - Dakshana (01:24:15) - Macro-economic factors in Turkey (01:29:05) - Fiat Chrysler (01:30:56) - Ferrari: The most Incredible Moat (01:42:49) - Investing in global markets (01:45:22) - Friendship with Charlie and Warren (02:02:24) - Rick Guerin (02:16:52) - Nick Sleep
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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