Mohnish Pabrai, founder of Pabrai Investments and author of 'The Dhandho Investor,' shares insightful perspectives. He discusses opportunity cost and the allure of new investments versus maintaining long-held assets. Emphasizing Stoic philosophy, he sees adversity as a blessing that fosters growth. Pabrai also dives into the rarities of business moats, execution, and the balance of happiness in wealth. His work with the Dakshana Foundation highlights thoughtful philanthropy, underscoring the complexities of managing performance and social issues in both business and education.
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insights INSIGHT
Value of Long-Term Commitment
Long-term commitment beats chasing slightly better new options in investing.
Sticking with an excellent holding outweighs obsession with the "next best" mistress.
question_answer ANECDOTE
Walmart in Nifty 50 Crash
The Nifty 50 crash wiped out most stocks but not Walmart.
Holding Walmart through the turmoil yielded nearly 15% annualized returns over 55 years.
volunteer_activism ADVICE
Hold Exceptional Businesses Longer
Don't sell exceptional businesses when fully or overvalued; hold them longer.
Intrinsic value is unknowable; great companies often surprise positively over time.
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Chuck Feeney's "The Billionaire Who Wasn't" tells the story of his remarkable life and his commitment to philanthropy. Feeney, the founder of Duty Free Shoppers, amassed a fortune but chose to give it all away anonymously through his Atlantic Philanthropies. The book details his journey from humble beginnings to immense wealth, highlighting his business acumen and his unwavering dedication to charitable causes. Feeney's story is a testament to the power of generosity and the importance of giving back to society. The book inspires readers to consider their own values and how they can make a positive impact on the world.
The education of a value investor
Guy Spier
In this book, Guy Spier narrates his early career struggles in investment banking on Wall Street and his transformation into a value investor. The book covers his experiences working at D.H. Blair, his education at Oxford and Harvard Business School, and the significant influences of Warren Buffett and Charlie Munger on his investment philosophy. It also emphasizes the importance of authenticity, continuous learning, and ethical considerations in investing. The book has been translated into several languages and has sold over 175,000 copies in English.
Competition Demystified
Bruce Greenwald
Competition Demystified offers a streamlined approach to understanding business strategy by emphasizing barriers to entry as the primary factor in achieving competitive advantages. The book simplifies Michael Porter's five-force model, focusing on how companies can create and maintain advantages through customer captivity, lower production costs, or economies of scale. It provides practical examples across various industries and discusses strategies for maintaining market stability through cooperation and bargaining.
Mohnish Pabrai's Interview with Stig Broderson at the Investors Podcast on April 15, 2025.
(00:00:00) - Introduction (00:00:59) - Opportunity Cost (00:03:23) - Nifty-50 in early 70's; Walmart (00:06:54) - Advice to 40-year-olds; Long runway (00:12:44) - Stoic philosophy by Marcus Aurelius: Adversity is a blessing (00:14:01) - Money vs happiness relationship (00:19:47) - My mathematical game: The Dakshana Foundation; Chuck Feeney (00:25:25) - Dakshana's selection criteria (00:29:20) - Dakshana's operational model (00:34:22) - Business moats (00:36:24) - Circle of competence (00:37:50) - Warren's "Too Hard Pile" (00:41:33) - Selecting an investment manager 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 
