Chai with Pabrai Mohnish Pabrai’s Session with CFA Society, United Kingdom on June 12, 2024
6 snips
Aug 9, 2024 
Mohnish Pabrai, a renowned investor and founder of Pabrai Funds, shares his journey from a tumultuous childhood to successful investing. He discusses the importance of identifying market anomalies and how mistakes can be powerful learning tools. Pabrai dives into his unexpected shift to coal investments, revealing the complexities of cash flow management. He emphasizes the need for thorough research in uncovering hidden investment gems, particularly in Turkey. His insights also highlight the value of a disciplined investment checklist for better decision-making.
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Pabrai's Entrepreneurial Roots
- Mohnish Pabrai grew up around entrepreneurship and innovation, influenced by his magician grandfather and entrepreneurial father.
- His father's repeated business ventures, including bankruptcies, taught him resilience and the ability to rapidly understand various business models.
Seek Market Anomalies
- Look for anomalies and situations where market prices don't make sense; these opportunities often signal undervalued investments.
- Set any valuation criteria you prefer and drill down into those companies to see if they fit your investment approach.
Value and Growth Are Linked
- Value and growth investing are two sides of the same coin, both aiming to estimate the present value of future cash flows.
- Quality growing businesses are preferable even if priced higher compared to low multiple businesses that are stagnant or declining.