Mohnish Pabrai's Inner Scorecard (TIP628)

Stig Brodersen talks with legend value investor Mohnish Pabrai. Since its inception in 1999, one dollar invested in the flagship fund would have turned into $12.51 vs. $4.72 for the S&P500. In the interview, Mohnish Pabrai discusses his approach to a congruent life.
Disclaimer: Stig Brodersen is invested in Pabrai Funds.
IN THIS EPISODE YOU’LL LEARN:
00:00:00 - Intro
00:12:27 - Which decisions Mohnish Pabrai made to improve his happiness
00:20:14 - How to use the Buffett system to grade people
00:28:43 - Why Mohnish likes to play bridge more than poker
00:34:29 - Which principles Mohnish lives by
00:44:09 - How Buffett and Mohnish (do not) take notes
🤝 Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig and the other community members: theinvestorspodcast.com/maste...
🏡 Make more from your vacation home by doing less. Partner with Vacasa today. vacasa.com/
📈 Learn to invest like legend investors do - from the company that has interviewed them. Use KZbin15 to get 15% off! theinvestorspodcast.podia.com...
💰Click here to download your FREE guide to Stop Worrying About Your Finances In 4 Simple Steps: www.theinvestorspodcast.com/s...
▶️ RELATED EPISODES:
- Mohnish Pabrai on The Power of Compounding: • Mohnish Pabrai on The ...
- The Dhandho Investor By Mohnish Pabrai | Heads I Win: • The Dhandho Investor B...
- Investing Wisdom from Mohnish Pabrai | Interview w/ William Green: • Investing Wisdom from ...
- Celebrating Charlie Munger w/ Mohnish Pabrai, Tom Gayner, Joel Greenblatt, & Chris Davis: • Celebrating Charlie Mu...
- What I’ve Learned From Charlie Munger, Mohnish Pabrai, Tom Gayner, & John Spears: • What I’ve Learned From...
🎧 Listen to our episodes here: link.chtbl.com/TIP-WSB
🖊️ Access the transcript and learn more about the guest here: www.theinvestorspodcast.com/e...
💡 OTHER RESOURCES
- Seeking Alpha is a crowd-sourced content service for financial markets. Take control of your financial future - Use our link here for a 14-day free trial: www.sahg6dtr.com/59QC8Z/R74QP/
⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤
ABOUT OUR SHOW 🎙
On We Study Billionaires, we interview and study famous financial billionaires including Warren Buffett, Bill Gates, and Ray Dalio. We teach you what we learn and how you can apply their investment strategies in the stock market.
🌍 Website: www.theinvestorspodcast.com/w...
📝 Help us understand our audience better so we can create a more intentional user experience by answering this survey! www.theinvestorspodcast.com/s...
⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤
📚OUR FREE INVESTING COURSES/RESOURCES www.theinvestorspodcast.com/t...
📊TRY OUR STOCK INVESTING TOOL: TIP FINANCE www.theinvestorspodcast.com/t...
⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤
❗ DISCLAIMER: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting.

[@WeStudyBillionaires]

📌 Check out this video next: kzbin.info/www/bejne/jpWVo6ewd7ugrpo ⚠ IMPORTANT: Please beware of cyber scams and phishing attacks. We will never ask for your contact info in the comments section. Kindly report suspicious accounts you see below. Thank you!

[@sumansupertramp1830]

"Play the long game and in the end the universe will conspire to help you in a manner that will blow you away . It would be difficult to come up with examples of people who were very reliable who are very honest who are very hardworking who had very high integrity and did terribly in life that would be very difficult to come up with . " - Mohnish Pabrai

[@voicuioanpaul6975]

Great interview! Mohnish is a way too interesting personality to ask him over and over about the dinner with Warren in 2007. Kudos to the host for the great job

[@WeStudyBillionaires]

So happy to hear you liked our new set of questions! 🎉

[@samonaro65]

Hi Stig! I don't come back as often to TIP as I used to before ... buuuttttttt if Mohnish is on, I'm on!!! Great questions, great interview..enjoyed this one a lot

[@WeStudyBillionaires]

Much appreciated! 💯

[@english9438]

From your last interview with Mohnish sir to this intrview with him , it's 1000% improvement. Thanks for this interview.

[@WeStudyBillionaires]

Thanks so much for watching! 💯

[@rafacomp2684]

This was actually a great interview. I love the questions. Thank you both!!

[@WeStudyBillionaires]

Glad you enjoyed it! 🙌

[@larskiehne9162]

Great to hear Monish being asked some new questions. Thank you both so much for doing this!

[@WeStudyBillionaires]

Our pleasure! ♥

[@WayneHan]

Its quite good to see the host asking a lot different questions, if I had the chance to raise the question, I will ask what Munger said to him when Pabrai and his wife are in the middle of a divorce.

[@RParkinson]

I’ve always wanted to know this! He’s referenced it multiple times but nobody has pushed him into it. I recall Charlie telling him to watch a specific film and it will give him the answer…

[@WeStudyBillionaires]

Happy to hear you liked our different angle on this interview! ♥

[@necimsanbaran4267]

This channel contribute me a lot thanks very much again great interview

[@WeStudyBillionaires]

So glad to hear that! 🙏

[@markets28]

Great Interview, thank you for asking new questions.

[@WeStudyBillionaires]

Our pleasure! ♥

[@KamilMauel]

Entering 2023 the Fund lost -71% last 5Y-1Q. Outperformed by SPY and QQQ +450% and 500%. Crazy recovered in the following 14 months. Now down again (slightly) since the 2018 Q1. SPY almost doubled, QQQ almost tripled. Long term alfa safe thanks to the powerful start in the bear market. The Guy Spear case is similar yet he lost almost all of the headroom, beaten 6 years in a row. Nobody less Buffet has been winning with the market longer than 3 decades.

[@sjamielZu]

What about Francois rochon, Russo, Gayner, Akre, Sequoia? And Li Lu, Bill Ackman almost outperformed 3 decades right?

[@riumudamc4686]

Look at Stanley Druckenmiller

[@KamilMauel]

@@riumudamc4686 That is exactly the 3 decades story 1981-2010 +30% CAGR public fund. There has been a private one thence yet there is a disperse info about the performance yet definitely way worse than before. Probably close to the market with much more volatility. E.g. -60% in 2022 vs 30 years with none down. +30 years is a challenge even for Buffet. 1962 -1998/06 +30% CAGR. Since 1998/06 +8% CAGR. BTW Do you know any long term funds performance tracker?

[@KamilMauel]

@@sjamielZu Bill Acman’s Pershing Square Holdings is 20 years old and 16.4% vs 9.7% S&P 500 net CAGR. However no alfa since 2013. Li LU claimed 30% yearly since 1998. Great, yet 4 years left till 3 decades criterion. François Rochon is breaking the barrier. Global and US portfolio about +5pp alfa in 31 years. However the latter has underperformed since 2016.

[@sjamielZu]

@@KamilMauel partly true. Li lu and Bill need indeed a couple of years to fully prove themselves (30yrs alpha), but their current long-term outperformance is not negligible... And Rochon did outperform since 2016? Look at his "Letters to partners"

[@jasoncloner4816]

Nice q and a. Thx

[@WeStudyBillionaires]

Glad to hear that! 💡

[@krishpatel1787]

I LOVE MOHISH PABRAIIIIIII!!!! I wish that i meet him atleast once in my lifetime

[@WeStudyBillionaires]

We love him too! ♥

[@user-qs1jt3hc8f]

Mohnish Pabrai made a mistake saiyng 18% compounded since after the peak in the '80s you couldn't reinvest coupons at 18%

[@lunchinvesting]

Great episode, thank you Stig! 🥳

[@WeStudyBillionaires]

Glad you enjoyed it! 🙌

[@userjoe4321]

Always enjoy listening to Mohnish. Good questions 👍

[@WeStudyBillionaires]

Much appreciated! 🙏

[@Antonio-dp9tf]

Great video Monish, thanks. I had one of those companys this year but i cannot standed up, i sold and got the almost 30% benefit. Not easy you know... if i bcame more wealthy i will start to manage in that way but by the moment what i want is to see green numbers and growing account for a peace of mind, i need more money faster XDXD, dont tell me nothing, i know is exactly the opposite way but the world is a crazy place, i just have to survive in here...

[@WeStudyBillionaires]

Thanks for watching! 🙌

[@JB-ty8vf]

LOVE that you scored an interview with Monish!!

[@WeStudyBillionaires]

Always a pleasure to have him on the show! ♥

[@atulmohlajee7910]

Very logical. Excellent investor thinking.

[@WeStudyBillionaires]

Thank you so much for watching! 💯

[@debchak27]

if someone says Assam Tea is the best, then that person hasn't ever tasted Darjeeling Tea. Anyway, great respect for Mohnish for the thoughts on life, investments and relationships.

[@WeStudyBillionaires]

Thanks so much for watching! 💯

[@faronskelton4085]

This was an excellent interview with Mohnish

[@WeStudyBillionaires]

So happy to hear that! 🎉

[@Dividendflywheel]

Mr. Pabrai; please permit me in saying what Charlie was to you, you are to me. I will be honored to have chai with you. Thank You Stig for this interview

[@WeStudyBillionaires]

Thanks so much for tuning in! 🙌

[@Dividendflywheel]

@@WeStudyBillionaires I don’t “skip classes” :-)

[@tarlcabot1970]

So, don't let loyalty stand in your way. Phase out your old friends if you find somebody "better." Wow! I wonder how Mohnish would feel if someone did that to him.

[@tarlcabot1970]

Stig, may I ask for your thoughts about this? Agree? Disagree? Am I interpreting what he said the wrong way? Thank you.

[@sebfox2194]

Personally, my interpretation was that you shouldn't stay loyal to someone who doesn't fit what you are looking for in a relationship, just because you have known them for a while. Monish wants to invest in people that he likes, and build mutually beneficial relationships, but investing in people is like investing in companies, in that you only have a limited amount if time, energy, and money to invest. So, you can't just invest in everyone. Moreover, if you choose well then you can really gain a lot, whereas if poorly, then you can really lose out. Therefore, if you are going to invest in people, you need to choose wisely. Moreover, if you make a mistake or if things just aren't working out, then it's better to fix it sooner, rather than keep on investing your time/energy/money into someone that you just don't click with. Aside from the losses that you can incur from investing in the wrong people, there is also the opportunity cost of the time and energy that you wasted, which could have been spent building positive relationships. It seems that you are only looking at this from the perspective of the person being 'phased out,' but don't want to consider that there is a cost to investing in people. So, everyone has to decide who they want to invest in and how to prioritise those investments. Even the nicest people will sometimes 'phase out' certain others because it's just not feasible or desirable to invest in everyone that you meet throughout your life.

[@sebfox2194]

I wrote a detailed and thoughtful response, but unfortunately Google has phased it out for some unknown reason. They have become a bit heavy-handed with the comment removals of late, but that's out of my control.

[@deoman99]

a lot of things i do not agree with.yes i am a skeptic .

[@chineduogbonna6947]

What of risks of Erdogan’s unorthodox economic policies, crashing the Lira? How is Mohnish factoring these risks?

[@chineduogbonna6947]

Hard core Islamists parties are growing stronger in Erdogan’s Turkey? There is a gradual shift away from secularism. These are risks Mohnish does not seem to be factoring into his turkey involvements.