TIP442: INVESTING IN STOCKS

W/ MOHNISH PABRAI

23 April 2022

On today’s show, Stig Brodersen talks with legend value investor Mohnish Pabrai. In the interview, Mohnish Pabrai shares his thoughts on Alibaba, Tencent, a personal letter from Warren Buffett, and much more.

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IN THIS EPISODE, YOU’LL LEARN:

  • What Warren Buffett’s letter to Mohnish Pabrai said.
  • What is Mohnish Pabrai’s driver for being an asset manager?
  • What is Mohnish Pabrai’s role with Dakshana Foundation.
  • Is it an advantage to spend money on research tools.
  • Mohnish Pabrai’s natural biases.
  • What to look for in an asset manager.
  • How and why to invest in a country with secular inflation.
  • The investment case for Reysas Logistics.
  • Thoughts on Alibaba and why there is no concern with the VIE structure.
  • Thoughts on Tencent and why it might be a better business than Alibaba.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

Stig Brodersen (00:03):
Since inception in 2000, today’s guest, Mohnish Pabrai has returned 781% to his investors’ net fees in his flagship fund. This is compared to only 378% for the S&P 500. In today’s conversation, we cover Alibaba, Tencent, his investment in Reysas Logistics, a personal letter from Warren Buffett, and much more. You do not want to miss out on this one. So sit back and enjoy my conversation with legend investor, Mohnish Pabrai.

Intro (00:31):
You are listening to The Investor’s Podcast. While we study the financial markets and read the books that influence self-made billionaires the most, we keep you informed and prepared for the unexpected.

Stig Brodersen (00:47):
Welcome to The Investor’s Podcast. I’m your host, Stig Brodersen. I’m thrilled to have invited no other than Mohnish Pabrai to join us today. Mohnish, thank you so much for making time.

Mohnish Pabrai (01:08):
Stig, it’s always a pleasure and a year goes by so fast it’s wonderful to be back with you and it will be even more fun to be back in Omaha.

Stig Brodersen (01:19):
It will. Let’s jump into to the very first question, Mohnish. You received a letter from no other than Warren Buffett the other day, and you posted it together with the comment, “I must already be in heaven.” I cannot help but ask, Mohnish, what did that letter say?

Mohnish Pabrai (01:37):
The letter, well, first of all, I was floored. I was floored when I got the letter, because Warren has been a big fan of Dakshana for a very long time. I mean, I think the first time I met him in 2008 for the lunch with Guy Spier, I had sent him the very first Dakshana annual report before the lunch and he had read every word. And he has a photographic memory, so he’s telling me like, “Hey, on page five there’s an error in your report.” And I’m trying to remember what is on page five. But anyway, I was able to prove to him that there was no error. But since then I’ve been sending him the reports and sometimes I’ll get a note saying, “Send me 20 copies. I want to send it to my kids and the board and grandkids, whatever.”

Mohnish Pabrai (02:21):
And he’d scribble a note, “This is wonderful that whatever.” But this time he took the time to actually write a formal letter, which Warren has got a lot of things he could be doing with his time. It takes a lot more time, different between scribbling a note and actually getting Debbie and dictating something and making sure it’s perfect and all of that and then sending it out. I mean, that’s I’d say 20 minutes or something of his time. So, that was really surprising. But basically he expressed deep admiration for what has happened at Dakshana. And he forecasts that it’ll continue to do amazing things.

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