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We Study Billionaires - The Investor’s Podcast Network cover image

TIP517: Mohnish Pabrai's Dhandho Investment Framework

We Study Billionaires - The Investor’s Podcast Network

NOTE

Bet Big on Good Bets

A successful business generates substantial cash flow, like Dollar General's 20% ROI strategy. However, even the greatest businesses eventually decline. History shows that very few companies survive in the long term due to competitive forces. Therefore, it's wise to limit cash flow calculations to 10 years. When investing, concentrate on a few strong bets, as the key is to bet big on promising opportunities, following Charlie Munger's advice.

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