Search
Get in touch!
Linkedin X-twitter Envelope

Mohnish Pabrai: The difficulty in taking obvious bets

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.

Click here to go to the external source.

Share the news

Disclaimer of liability

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

You might also find this interesting:

Bill Ackman: Success is Not A Straight Line Up

May 21, 2025

In the 2025 UBS Berkshire Hathaway Fireside Chat, Bill Ackman and Ryan Israel from Pershing Square Capital discuss investment philosophy, market volatility, the impact of tariffs and geopolitics, and lessons from Warren Buffett.

The conversation covers how to identify durable, high-quality businesses, the importance of long-term thinking, and the evolving landscape for activist investing. Ackman shares personal reflections on resilience, mentorship, and the role of free speech, while both speakers provide practical advice for young investors and fund managers.

VALUExBRK 2025: Get The Insights From all This Years Speakers

May 21, 2025

VALUExBRK 2025 is a value investing event hosted by Guy Spier and the Aquamarine team, held in Omaha in May of 2025. The gathering brings together leading investors and thinkers ahead of the Berkshire Hathaway Annual Shareholders Meeting, featuring a diverse lineup of speakers from the investment and business world. VALUExBRK serves as a platform for sharing investment insights, networking, and discussing current trends in business and finance among a global audience.

Norges Bank 2025 Investment Conference: What Makes A Great Company?

May 13, 2025

Once again, the good people at Norges Bank have brought together a very interesting group of speakers to their 2025 Annual Investment Conference, titled “What Makes a Great Company?”

Speakers include some of the world’s leading CEOs, investors, and academics to explore the essential qualities behind enduring corporate excellence, including leaders from Goldman Sachs, Novo Nordisk, Otis, Ferrari, Nasdaq, and investment firms, offering a rare, multifaceted perspective on what sets truly great companies apart in an era of rapid change and uncertainty.

Karen Karniol-Tambour: Today’s Radically Different Market Environment

May 13, 2025

In this Bridgewater Associates interview, Co-CIO Karen Karniol-Tambour discusses the firm’s latest outlook on the global economy, the investment landscape, and the urgent threats facing portfolios. The conversation centers on the shift to a new era of “modern mercantilism,” the implications for US assets and the dollar, the rising risk of recession, and the role of technological disruption, particularly artificial intelligence (AI).