Chai with Pabrai Mohnish Pabrai's Presentation and Q&A at the Boston College on October 27, 2022
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Jan 30, 2023 
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Cannibal Return Formula
- Mohnish Pabrai developed a "cannibal return formula".
- It calculates returns based on earnings growth, share reduction, and multiple expansion.
Buffett's IBM Misstep
- Warren Buffett's investment in IBM was a losing bet.
- This highlights the importance of avoiding companies in secular decline, even if they engage in buybacks.
Long-Term View
- When evaluating "cannibals", consider the long-term future of the business.
- Avoid businesses in secular decline; cyclicality is acceptable.