Chai with Pabrai Mohnish Pabrai’s Q&A Session with Students at Indiana Univ. Kelley School of Business –April 1, 2021
Jan 12, 2023
Mohnish Pabrai is a distinguished investor, founder of Pabrai Investment Funds, and author of notable investment books. He discusses his unique investment checklist and the importance of understanding one's 'circle of competence.' Pabrai delves into the shipping industry's complexities and shares insights on concentrated investing versus diversification. He also explains the Kelly formula's role in allocating investments and the significance of patience in successful investing. Additionally, he highlights his philanthropic efforts through the Dakshana Foundation, blending investment wisdom with social impact.
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Episode notes
Say No Fast To Most Ideas
- Use rapid filters and ask whether a company falls within your circle of competence.
- Mohnish Pabrai recommends saying no quickly to most opportunities and only dig deeper for a few.
Center Your Circle Of Competence
- Know the two or three variables that drive a business's long-term outcome.
- Mohnish Pabrai warns if you ask "what is this business worth?" it's outside your circle of competence.
How I Learned Shipping Economics
- I dug into VLCC shipping because its dynamics mirrored long office tower cycles.
- Mohnish Pabrai learned time-to-build and fleet scrapping made shipping rates wildly cyclical.
