The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network TIP812: Mohnish Pabrai on Berkshire & Letting Winners Run
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May 3, 2026 
Mohnish Pabrai, value investor and founder of Pabrai Funds and the Dakshana Foundation, offers a candid take on concentrated, long-term investing inspired by Buffett and Munger. He discusses Berkshire Hathaway’s low hit rate and the 4% rule. He explains why top managers should let winners run, shares stories of big mistakes like selling too early, and talks about allocating for multi-decade horizons.
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Small Percentage Drives Almost All Market Returns
- Most investments fail but a tiny minority drive nearly all market returns, roughly 4% delivering the gains.
- Pabrai cites Berkshire's 3–4% hit rate and the broader US market's 4% winners as the asymmetry that creates outsized returns.
Judge CEO Pay In Context Of Equity And Role
- Compensation figures must be seen alongside equity stakes and behavior, not judged in isolation.
- Pabrai notes Greg Abel's roughly $700M–$1B net worth and limited Berkshire ownership, arguing he's well compensated but not overpaid.
Hold Four Core Holdings For Century Long Portfolios
- For multi-generational holdings, diversify across a few broad exposures rather than a single bet.
- Pabrai recommends roughly four holdings: S&P, Berkshire, a broad international index, and one more to spread long-term risk.
