Mohnish Pabrai: Value Investing

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Stig Brodersen talks with famous value investor Mohnish Pabrai. They explore Mohnish Pabrai's new investment framework and how retail investors can clone it.
IN THIS EPISODE, YOU'LL LEARN:
0:00:00 - Intro
0:00:28 - Why 2020 has been the year where Mohnish Pabrai learned the most since he found Warren Buffett in 1994
0:17:26 - Why the Spawning framework is, and why it’s better than buying back shares
0:23:03 - Where Mohnish would like to add to his circle of competence with no time cost
0:35:51 - Why watching paint dry is the core of being a great investor
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[@pratikjain4704]

This is hands down one of the best content!

[@anisg19]

Thanks for sharing such invaluable knowledge. Very educational.

[@watchingtube1874]

Much harder to do than described. Like buffet just said, there was thousands of companies in car industry in early 1900 but only 3 is left. Selecting the very few that will end up dominating is extremely hard.

[@robertoespinoza5158]

Could you include a timeline to navigate in the content?

[@BradKaellner]

Time to kick back and watch the SRG movie 🎥 🍿

[@satisfyingmoments1761]

Seems like you see EVERY VIDEO with Mohnish, love it!! I love your channel

[@TheInvestorsPodcastNetwork]

Thank you, Brad! Really appreciate it. So sorry for the late reply! - Stig

[@hitheshmangalore5150]

Thanks for this podcast. Very Interesting & look forward for more of these.

[@hanbowang3820]

What’s the name of the documentary he mentioned? I can’t seem to find it on Netflix

[@kevalbhagat8973]

please make english subtitle available.. My humble request..It will help me a lot! thank you :)

[@agarwaltaron]

Awesome !!

[@sundarraman6206]

Great conversation. Enjoyed it

[@TheInvestorsPodcastNetwork]

Thanks for listening.

[@basamnath2883]

I respect Mr Pabrai. I see on KZbin successful people talking about value investing after they achieved success by taking lots of risk in growth stocks. What is the use of investing in stocks like T, INTC etc for dividends and value when there is missed opportunity in growth stocks like MSFT, ADBE or ADSK, crm? I don't think that value investing is for everyone. A 20 year old is better of investing in high growth, high risk companies than investing in stocks like T where the stock doesn't move anywhere. Value investors claim about the dividends those companies give. But back testing of companies like T shows otherwise.

[@carlmannhard8051]

Does anyone know what the Turkish company is that he is talking about? Is it Reysas?

[@nikhilmarne5129]

Backable, ceasers palace coup are two books he mentioned in podcast. Took 30 minutes to figure out. 😂

[@vpnconsult]

This was educational

[@JamesToler]

Beautiful Mohnish

[@pbd6966]

i am looking for more content on how to determine great businesses.

[@angadsingh3267]

Absolutely spectacular 👌🏻

[@uttamdutta9868]

Great insight. But a small clarification if you Pls. Monish Pabrai says every stock sell is an admission of mistake. But how to bankroll fresh acquisitions without selling ? How much fresh funds can be infused ?

[@VadimChes]

Why there is no english subscripts?

[@ujjwaltripathi1178]

Anyone knows which Turkish company is this?

[@investingdeepvalue482]

Patience is key for value investing .....I have something good on deep value investing.

[@TheInvestorsPodcastNetwork]

Thanks for tuning in!

[@thenon-gaapbillionaire3306]

Do they talk about alibaba?

[@TheInvestorsPodcastNetwork]

Who should we invite next? :) Quick side note: We would like to remind the TIP Community to beware of cyber scams & phishing attacks. We have received reports of fake accounts claiming to be affiliated with The Investor's Podcast Network or posing as one of our hosts. Please help us report those suspicious accounts. We will never reach out to you for any business or investment opportunity. Stay vigilant!

[@sheanathan3566]

That was excellent. You really got Mohnish to open up about so many things. After listening to this I would love to hear more from Nick Sleep and what he would invest in today. Cheers! -Nathan

[@samul1997]

Li Lu

[@KubazTKDLBL]

Chris Mayer:)

[@MufasaRoyale]

Nick Sleep

[@honeyjain6655]

Stan drukenmiller or peter lynch

[@heals630]

That personality test sounds very thorough ....anyone know of a similar thing today?

[@vcash1112]

💯

[@meditationnostalgia7136]

Watch the paint dry until 90?

[@yoshtakeuchi]

13:44-23:00

[@nikhilarora7388]

Which book changed his life ? Can you pls share the name of the book

[@arjansingh6797]

One up on wall street by Peter Lynch

[@garysmith9321]

I think, in previous videos, he has mentioned The Intelligent Investor by Benjamin Graham. I have read the book several times and it still holds true today. It is funny to note that a common sense approach to investing is contrarian. The down side to common sense investing is boredom. There is no "buy, buy, buy" and "sell, sell, sell".

[@nikhilmarne5129]

Backable, ceasers palace coup are two books he mentioned in podcast. Took 30 minutes to figure out. 😂

[@roromaka]

Seems like he changes his strategy/framework every year or two. Always fighting the last battle.

[@evaeva-ju5pd]

😎

[@kurtcooper3699]

I have news for u! U r who u r because God has called u by name from the womb & u r already designed for the perfect will of God in your life time. It's mankind's sin & the enemies rights to influence our choice from right 2 wrong that twist the outer man from his inner spirit which is meant to fellowship with God. Your a spirit being. If your flesh is competing & winning your eternal is @ odds constantly. If your inner man is @ peace the outer man must conform. That's God's creation & its every one who calls upon the name of God. The walks of life. The end game will never involve cash holdings as a goal. The ultimate investment is in heaven which by the way holds your wealth in eternity! Be blessed one & all.

[@addyleman7068]

Right what I don't like and find not practical is his timeframes. Oh i'll buy X business and wait 10-20 years. This is unrealistic and a way to comfortably ignore actual business changes and instead just "bet" on the market indices rising and the company staying alive to benefit from indice related appreciation.

[@jayangli]

Addy I think what he means is to really make the big money in stocks we have to wait.

[@rmandava]

CD w

[@GeorgetheArchitect]

Why does Stig talk like he is writing a formal letter?

[@ThorRavnsborg]

I'm not exactly sure what you are referring to but his accent is Danish (sounds like he's from the Jutland peninsula if I'm not mistaken). I'm able to hear that since I'm Danish too.

[@thijs8954]

Thank you for a fantastic interview, packed with great insights. And you guys made me laugh out loud a few times, what more can one want. And I just knew Mohnish was going to say AI. They say software is eating the world, well I think AI is going to devour it. Which brings me to my next point, Tesla is not overvalued at all, in fact it is what you would call an "apex spawner". After having researched the company and its competition for more than four years I am still a happy owner. I did not sell one share even after my investment was a fifteenbagger (when Tesla was at 900). Anyway thanks again, I thoroughly enjoyed the conversation !

[@thijs8954]

@@gregorymannarino4838 No thanks :)

[@xushenxin]

so who is Nick?

[@johnalmeida1483]

Nick Sleep

[@ronit.pereira7172]

Nick sleep of Nomad investment managers. I highly recommend to read his partnership letters.

[@mertyesilgoren6043]

I dont know how come mohnish recommend turkish stock market. It is very cheap in terms of p/e ratios but turkish lira losing its value over time. And there ara no good stock market habits in turkey evren if you buy the greatest bargain, for making it 10x you need other people to sell it but in turkey people dont buy and hold. And number of investors are not many . They prefer us stocks

[@guyredares]

isn't this the duck face who told everyone o buy BABA?

[@meditationnostalgia7136]

Einhorn? Hahahaha

[@mydutube]

Watch Pabrai’s presentation at Carrol School of Management from December 2015. He said Tesla was overvalued, and GM was a better investment. Lol.. That didn’t age well - at all. Now 5 years later he again talks down Tesla. Cognitive dissonance much?

[@xiaoyuyuan5661]

well，did you hold Telsa for the last five years? It is so easy to say it now. Few can hold onto such a fluctuating stock

[@mydutube]

@@xiaoyuyuan5661 I’m holding it for last 3 years and not gonna sell for another 5 years at least. I mostly invest in hyper-growth stocks so fluctuations don’t scare me as long as business execution remain strong.

[@kingzion3032]

@@mydutube yes buddy understand that there are always outliers. Tesla was an outlier, using all conventional mechanisms and even fundamental mechanisms of valuing a business Tesla was grossly overvalued. Actually it is still overvalued but the hype out paced the fundamentals - this happens once in a moon and those stocks fly. Mathematically Tesla is not worth $500 billion. You need to 75x it’s earnings. Hence a speculative business.

[@mydutube]

​@@kingzion3032 yes, it sure is an outlier for "conventional mechanisms" of "value" investors. Investing is much more than looking at numbers in the rearview mirror. It requires multidisciplinary approach to thinking. Things like understanding the true potential of a new technological and scientific advancements, doing techo-economic assessments, forecasting cost declines, tech-adoption life cycles, tracking socio-economic trends, understanding company cultures, nature of competition, rate of innovation, r&d efficiency, economic moats, data network effects, operating leverage, product/service quality assessment, relative value propositions of product/service etc. Thinking in probabilities instead of analogies is much more prudent. Tesla is perpetually "overvalued" to people who only look at numbers and/or fall victim to popular-media narratives - not saying you are one of those people. I'm just saying identifying exceptional outliers with high degree of confidence is possible and then they won't look like outliners in the constantly changing world.

[@kingzion3032]

@@mydutube don’t count your chicken yet unless you have sold for a profit. If you have not then come back to me in 2025 and let’s see what Tesla is doing as a a business. My value investor hat tells me that they will not be successful in the long term and that by 2027 they will now a longer exist as serous blue chip stock. Don’t confuse luck with genius. Buying Tesla in 2016 like I did was a gamble, not investing.

[@arnibah]

Donald Trump bankrupted his casino.

[@MetalBum]

Buy Ethereum it’s highly undervalued relative to the total locked value in DeFi

[@redcanoe2637]

LOL HFSP

[@honeyjain6655]

Shoo away man!