By
Borsgade
Mohnish Pabrai recently stopped by Meb Faber’s podcast, which provided an interesting discussion on very different topics from Brigde to the ability to concentrate his portfolio and still sleep well at night.
Over time, many entrepreneurs have been comfortable with having a very large concentration in one company – namely the one they have founded. A strategy that has been used with great success by the Walton family and the founders of everything from Google to IKEA.
As investors, we believe Pabrai can adopt the same approach:
So I think that the framework we have to use is to think of ourselves as, if we are not the founder, we are basically an owner or a partner.
So think of it as a partnership in a private enterprise. And so I think that once you make that shift where you say that, “This is a family business, and I own 30% of the business. I’m not the founder, but I have a significant stake, and I understand the business.”
Then those two, the investor, the entrepreneur, start blending. I mean, we see this over and over.
Share the news
The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.
Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk
In this interview with Jason Zweig, the editor of the 75th anniversary edition of Benjamin Graham’s classic book ‘The Intelligent Investor’, he discusses Graham’s timeless principles for successful investing.
In a recent interview, François Rochon discusses his approach to identifying exceptional businesses by combining quantitative and qualitative analysis. He starts by examining historical performance metrics such as return on capital, profit margins, debt levels, and the quality of earnings to identify strong companies.
In a recent interview, Cliff Asness delves into the complexities and prospects of rational investing, especially during times of significant market inefficiency
In his latest article, Michael Mauboussin presents a collection of their most interesting and controversial charts and insights from their reseach.
