Chai with Pabrai Mohnish Pabrai Presentation and Q&A with UCLA Student Investment Fund - November 5, 2020
Jan 26, 2023
Mohnish Pabrai, founder of Pabrai Investments and author of notable investment books, shares his journey from casual stock tips to managing an investment fund influenced by Buffett's philosophies. He discusses evolving strategies post-dot-com boom, emphasizing long-term value over fleeting trends. Pabrai critiques traditional sell-side research, highlighting the need for alternative insights. He also reflects on personal self-discovery, leadership challenges, and the importance of team dynamics in investment management.
AI Snips
Chapters
Transcript
Episode notes
Launch Story of Pabrai Funds
- Mohnish started managing a fund after friends asked him to manage their money based on his personal investment success.
- He personally guaranteed principal and a 6% minimum return initially to protect friendships and gain trust.
Minimize Startup Fund Expenses
- When launching a fund, minimize expenses by working from home and hiring part-time help initially.
- Amortize legal and setup costs over several years to ease financial burden.
Hold Compounders Longer
- Initially, Mohnish sold great compounders once they reached intrinsic value or slightly above.
- Now, he prefers to hold great businesses longer, only selling when valuation is egregiously high.