InvestorGuide Interview with Mohnish Pabrai (Transcript)

Mohnish PabraiInvestorGuide had a great interview with Mohnish Pabrai on July 11, 2007. They asked him questions that no one else had asked him in other interviews, and I thought Pabrai's answers were very valuable.

I highlight some insightful points below:

  • Investment Style Evolution
    • Buying a fair business at a cheap price.
    • Buying good businesses at a fair price.
    • Buy a good business at a cheap price.
  • Moats
    • Moats are critically important.
    • They are usually critical to the ability to generate future cash flows.
  • Buy and Hold Forever Approach
    • The key in these cases is large discounts to intrinsic value and not to think of them as buy and hold forever investments.
  • Running Businesses
    • Being an investor is vastly easier than being a CEO.
    • Both investing and running a business are two sides of the same coin.They are joined at the hip and having experience doing both is fundamental to being a good investor.
  • Wit and Wisdom
    • Temperament and passion are the key.
    • Change is the enemy of the investor.
    • Future performance is a function of future investments.
  • Advice To Investors
    • There is just one way to invest - buy assets for less than they are worth and sell them at full price.
    • One should stick to one's circle competence, read a lot and be very patient.
    • Studying Buffett. Then I added Munger, Templeton, Ruane, Whitman, Cates, Hawkins, Berkowitz etc.
    • Best to study the philosophy of the various master value investors and their various specific investments. Then apply that approach with your own money and investment ideas and go from there.
Full Interview Transcript.

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