Chai with Pabrai Mohnish Pabrai's Q&A Session with Narsee Monjee Institute of Management Studies, Mumbai
5 snips
Feb 16, 2023 
Mohnish Pabrai, Founder and Managing Partner of Pabrai Investments Funds, shares his insights on value investing during a lively Q&A. He explains his multibaggers approach and highlights McDonald's remarkable 60+ years of compounding success. Pabrai also discusses Chuck Akre's Three-Legged Stool strategy, emphasizing the relevance of patience in investing. He tackles whether value investing is still viable today, and compares venture capital to public equities, advocating for clarity and a strategic approach in both.
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Rigorous Filters Save Time
- Quickly eliminate businesses with low return on equity or those heavily reliant on debt.
- Avoid investing in companies with unclear or poor management ethics.
Lessons from Early Indian Stock Bets
- Early investments in Indian IT company Satyam yielded a 150x return within five years.
- Selling winners like Kotak at the peak was a mistake; they later became 500x or 300x multibaggers.
Value Investing Alive in Auctions
- Value investing is not dead because auction-driven markets always create pricing inefficiencies.
- Stocks often swing 50-100% in a year, unlike real estate prices, proving constant opportunity for value.
