TIP812: Mohnish Pabrai on Berkshire & Letting Winners Run
The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network
Berkshire's Low Hit Rate and the 4% Rule
Mohnish explains Berkshire's few home runs and the idea that a small percentage of companies drive market returns.
On today’s show, Stig Brodersen talks with legendary value investor Mohnish Pabrai. Since its inception in 1999, one dollar invested in the flagship fund would have grown to $17.29, compared with $6.29 for the S&P 500. In the special interview, you can join Mohnish and Stig’s discussion on Berkshire Hathaway, investing mistakes, and the importance of letting winners run.
Disclaimer: Stig Brodersen is an investor in Pabrai Funds, which creates a potential conflict of interest, as he may benefit if the funds perform well. He will not be compensated for this interview
IN THIS EPISODE YOU’LL LEARN: 00:00:00 - Intro 00:01:53 - Whether Greg Abel’s compensation is fair 00:05:21 - Why most investments fail, and why that’s okay (the “4% rule”) 00:11:40 - Whether to own Berkshire Hathaway or the S&P500 over the next century 00:28:23 - Why Stig thinks that Mohnish diversifies too much 00:31:04 - Why good asset managers should eventually have 95% of their portfolio in one stock 00:36:21 - How Mohnish met Michael Burry 01:04:50 - What Mohnish learned from his best friend Guy Spier
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive TIP Mastermind Community.
- Mohnish Pabrai’s website.
- Learn more about Mohnish Pabrai’s Dakshana Foundation.
- Our interviews with Mohnish Pabrai about Investing and Life Lessons.
- Our interviews with Mohnish Pabrai about The Inner Scorecard.
- Our interviews with Mohnish Pabrai about Masterclass Investing.
- Our interviews with Mohnish Pabrai about investing in stocks.
- Follow Stig on X and Linkedin.
- Related books mentioned in the podcast.
- Ad-free episodes on our Premium Feed.
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