Mohnish Pabrai's Sessions at UNO on May 2, 2025 and Columbia Business School on March 25, 2025

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Jun 12, 2025

Dive into the world of investing wisdom, where lessons from iconic stocks like Walmart and Microsoft take center stage. Discover the importance of an investment checklist, akin to aviation safety, and navigate the complexities of the 'circle of competence.' Gain insights on seizing opportunities in emerging markets and hear compelling comparisons between tech giants Apple and Microsoft. With anecdotes from legendary investors and discussions on the psychological aspects of investing, this conversation is packed with valuable nuggets for aspiring investors.

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INSIGHT

Power Laws and Holding Wins

Investing success follows power laws where a tiny fraction of investments deliver most returns.
Holding onto winning stocks long-term is more critical than the initial purchase decision.

ANECDOTE

Nick Sleep's Quiet Portfolio

Nick Sleep returned investors' money after huge gains and split his wealth into three stocks to hold long-term.
His portfolio performance continued well thereafter despite minimal management and small missteps.

ANECDOTE

Missed Ferrari Gains Anecdote

Mohnish Pabrai missed out on holding Ferrari shares after spinoff, leading to significant lost gains.
Also experienced massive gains and losses with other holdings, highlighting common investment pitfalls.

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Mohnish Pabrai's Sessions at University of Nebraska Omaha on May 2, 2025 and Heilbrunn Center for Graham and Dodd Investing at Columbia Business School on March 25, 2025.

(00:00:00) - Introduction (00:02:20) - Walmart vs The Nifty-Fifty (00:05:18) - Berkshire's 12 best decisions in 58 years; Ajit Jain (00:08:05) - Nick Sleep (00:12:06) - Learning from mistakes; Ferrari & Frontline (00:13:30) - Rules of becoming rich (00:16:15) - Walmart & the Walton Family (00:17:51) - Microsoft; Steve Balmer (00:23:21) - Coca-Cola (00:25:32) - Evolution of strategies (00:26:52) - Investment checklist (00:30:36) - Circle of competence (00:33:28) - Macroeconomic factors; Saudi Aramco & Ferrari (00:40:47) - Learnings from Warren and Charlie (00:43:02) - Golf vs. Investing (00:44:50) - Identifying opportunities; Moody's Manual and The Japan Company Handbook (00:50:33) - Duan Yongping: Oppo & Vivo (00:53:53) - Economic moats (00:55:51) - Impact of leverage; The Founder's Podcast: IKEA (00:58:51) - Capitalism in investing; Amazon (01:00:33) - Value investing for technology businesses: Amazon (01:05:40) - Index investing (01:07:38) - Microsoft vs. Apple; Bill Gates (01:13:01) - When to exit an investment (01:19:31) - Selecting a stock (01:20:41) - Circle of competence; John Arrillaga (01:23:50) - Investing in Turkiye; Reysas & TAV Airports (01:28:02) - Investing in coal businesses (01:31:58) - You can identify great businesses only after you own them (01:33:42) - Portfolio concentration (01:39:26) - Investing is watching the paint dry (01:42:17) - Coca-Cola; Hetty Green from The Founder's podcast (01:47:36) - Hedging an investment (01:48:45) - Investing in commodities 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.