Mohnish Pabrai, an Indian-born American investor, is a revered figure in the field of value investing.
Following Warren Buffet’s investment philosophy, he has achieved a remarkable return of 517 percent since 2000, significantly outperforming the S&P 500.
Despite being a late bloomer who learned about Buffet at 30, Pabrai went on to establish the successful Pabrai Investment Fund in 1999, growing its assets under management (AUM) to USD 570 million by 2019.
In his book “Dhandho Investor,” Pabrai champions the ‘low risk, high uncertainty’ investment approach, looking for undervalued stocks with strong business fundamentals.
He encourages investors to think like entrepreneurs and prefers established businesses with a slow rate of change.
His seven-point investment checklist provides a solid foundation for value investing.
Today, with a net worth exceeding USD 100 million, Pabrai also supports the Dakshana Foundation, aiding India’s poorest.
I have selected the top quotes by Mohnish Pabrai to enhance your investment knowledge.
Best Mohnish Pabrai Quotes
1. “You don’t make money when you buy stocks. And you don’t make money when you sell stocks. You make money by waiting.” ~ (Mohnish Pabrai).
2. “Heads I win, tails I don’t lose much.” ~ (Mohnish Pabrai).
3. “Mistakes are the best teachers. One does not learn from success. It is desirable to learn vicariously from other people’s failures, but it gets much more firmly seared in when they are your own.” ~ (Mohnish Pabrai).
4. “Entrepreneurs are great at dealing with uncertainty and also very good at minimizing risk. That’s the classic great entrepreneur.” ~ (Mohnish Pabrai).
5. “The only way one should buy stocks is if you understand the underlying business. You stay within the circle of competence. You buy businesses you understand.” ~ (Mohnish Pabrai).
6. “People see poverty all around them in India, but they are desensitized or immune to it. I came to the conclusion that poverty is driven by lack of education.” ~ (Mohnish Pabrai).
7. “There is no such thing as a value trap. There are investing mistakes.” ~ (Mohnish Pabrai).
Top Mohnish Pabrai Quotes
8. “Warren Buffett has said many times that people either get value investing in five minutes or they won’t get it in five years. So, there is something in the human brain, that for some of us, makes all the difference in the world right away and the patience it requires is part of the wiring process.” ~ (Mohnish Pabrai).
9. “We Americans love original ideas. But truly, there are already plenty of good ones out there, ours for the taking. If I were too proud to copy the ideas of others, I likely wouldn’t have even a fraction of my current success.” ~ (Mohnish Pabrai).
10. “The problem most nonprofits have is that they are run by romantics who are great to hang out with, but they have no clue.” ~ (Mohnish Pabrai).
11. “I have a hard time getting past the day without the nap, so the nap is a must.” ~ (Mohnish Pabrai).
12. “The good news in investing is there are no HR problems. If there are no humans, there are no problems!” ~ (Mohnish Pabrai).
Famous Mohnish Pabrai Quotes
13. “The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.4 – Warren Buffett.” ~ (Mohnish Pabrai).
14. “Einstein also recognized the power of simplicity, and it was the key to his breakthroughs in physics. He noted that the five ascending levels of intellect were, “Smart, Intelligent, Brilliant, Genius, Simple.” For Einstein, simplicity was simply the highest level of intellect.” ~ (Mohnish Pabrai).
15. “Capitalism is greed driven.” ~ (Mohnish Pabrai).