Chai with Pabrai Mohnish Pabrai Lecture at Boston College (Carroll School of Mgmt) - October 8, 2020
Feb 7, 2023
AI Snips
Chapters
Transcript
Episode notes
Market Cycles Repeat Over Decades
- Market returns show long flat periods punctuated by euphoric rises and crashes.
- These cycles repeat roughly every 10 to 17 years, influenced by valuation extremes and market memory.
Early Career 100-Baggers
- Mohnish Pabrai experienced two more than 100-baggers early in his career, one in India and another in the U.S.
- These gains came before starting his fund in 1999 amid market headwinds.
Valuation Drives Investment Returns
- Buying undervalued stocks and selling as they approach intrinsic value is a successful strategy versus chasing overvalued momentum.
- Valuations matter greatly, as shown by flat returns for over a decade for high-priced stocks like Microsoft post-Dot-com bubble.