By
Borsgade
During his recent interview with The Investor’s Podcast, Mohnish Pabrai discusses how to use the Buffett system to grade people, the principles Mohnish lives by and why Buffett and Mohnish (do not) take notes.
Mohnish also talks about a conversation he had with another investor some years back on not investing in high-yield US treasury bonds i the early 1980’ies (quote below).
Okay, you could have bought 30 year U.S. treasuries. In 1980 or 1981, and for 30 years, the US government would pay you 18% a year on that bet. Okay? And he said to me, Mohnish, not only the short Berkshire, I didn’t take that bet. Okay? That 18% be, no. Most people didn’t take that bet. Okay?
And then he said to me, I just want God to gimme one more chance. He said to me, give me one more chance of 18 percent U.S. treasuries and I will put everything in. I promise God I’ll put everything in and I’ll never invest in anything again. So exactly what you were saying is what this guy was saying to me, which would have been smart for him to do.
And that would have been one hell of an investment from 1980 to 2010 to get 18 percent compounded It would be, it would have been unbelievable with no volatility.
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
Francois Rochon, CIO of Giverny Capital, recently shared his approach to navigating market crashes on the Meb Faber Podcast. His perspective emphasizes acceptance, preparation, and strategic action rather than panic or futile attempts at market timing.
In his latest memo “Nobody Knows (Yet Again)”, Howard Marks addresses the profound uncertainty facing investors and policymakers amid recent upheavals in global trade and economic policy. Drawing on parallels to the 2008 financial crisis and the Covid-19 pandemic, Howard emphasizes the limits of forecasting in unprecedented situations and the importance of rational, flexible decision-making despite the absence of clear answers.
In this recent interview, François Rochon, founder of Giverny Capital, shares his insights on optimal portfolio strategy. François emphasizes a balanced and disciplined investment philosophy that prioritizes quality over excessive diversification.
In his recent article, NYU professor Aswath Damodaran shares his thoughts on how politics, globalization, and disruption has changed the investing landscape.
