You Only Need to Get Rich Once. (Mohnish Pabrai Interview)

In investing, we want to be unreasonable. We want extreme unreasonableness where things just don't make sense. >> What would be the subheadings of your investment strategy? >> This is a endeavor which is looking for needles in haystacks. There are haystacks that are rich with needles. >> Our guest today, managing partner of Pabrai Investment Funds.

>> Need no introduction. >> Monish. >> Monish Pabrai. >> Where do people most frequently go wrong? >> Even a guy like Warren Buffett, he made more than three or 400 investments. Only 12 of them moved the needle. The hit rate was like 3 4%. The biggest mistake I've had in my career is

>> So, Monish, for the next hour, I would really like to nail down your personal investing strategy. I know last time we spoke a few months ago, you said your strategy is infrequent big bets. Do you have like a set of steps that you go through? What would be the subheadings of your investment strategy?

>> Yeah, I'll I'll go through that in a second, but I I want to just give a caveat. >> Okay. >> And that is that the dollar cost averaging indexing and spending less than you earn is probably the correct way for more than 99% of the population. >> Right. >> We're going to spend our time

on everything else but that today. >> Right. >> The point 0.001. >> for the 1% or less. >> Yeah. >> But I would just say that just like you can't become a surgeon by listening to a 1-hour masterclass >> Mhm. >> or you can't become a lawyer or a CPA >> Mhm. >> there are there are many kind of

background things that become fundamental. For example, I took accounting in high school. Right? So, that's just kind of like a base layer, right? And we're not going to talk about that a whole lot. So, there are a lot of pieces about intrinsic understanding of businesses, intrinsic understanding of accounting, intrinsic understanding of kind of sniffing out where value is, and