1 million to $13 million in 5 yrs: 'Indian Warren Buffet' Mohnish Pabrai shares his success journey (2024)

Mohnish Pabrai, an Indian-American businessman and investor, attributes his remarkable success to replicating the strategies of legendary investor Warren Buffett. Through disciplined value investing, Pabrai has achieved impressive returns, establishing himself as a significant figure in the investment world.

In a recent post on X, Andrew Wilkinson, co-founder of Tiny Capital, shared his journey into investing, highlighting "The Dhando Investor" by Mohnish Pabrai as a pivotal influence. Wilkinson said, "Ten years ago, I knew nothing about investing. Sure, I’d read a few books on Warren Buffett, but I didn’t know how to do it. Then I read 'The Dhando Investor' by (my now friend) Mohnish Pabrai, and it became my bible."

During the course of the interview, Mohnish Pabrai referenced a number of his own investing strategies, as well as what

Mohnish Pabrai’s Background
Born in Bombay, Mohnish Pabrai is a 59-year-old Indian-American businessman, investor, and philanthropist who has amassed billions by adopting and adapting Warren Buffett's investment strategy. Pabrai's investment journey began after selling TransTech in 1999 for $20 million. He launched the Pabrai Investment Fund with an initial investment of $1 million, focusing on undervalued stocks.

Notable Investments

Pabrai's early success included Satyam Computers, where his investment appreciated 140 times in five years. He sold the stock in 2000, just before the dot-com bubble burst, making a profit of $1.5 million. Pabrai then multiplied this capital to $10 million in less than five years. His portfolio also includes significant investments in companies like Micron Technology and Fiat Chrysler Automobiles.

Key Investment Strategies
Pabrai's approach is grounded in value investing, inspired by Warren Buffett. He focuses on:

• Identifying Right Stocks: Pabrai believes in buying stocks as if purchasing entire companies. "I'm a shameless copycat," he admits. "Everything in my life is cloned.... I have no original ideas."
• Big Bets: His portfolio consists of carefully selected, high-conviction investments. "Heads, I win; tails, I don't lose much," Pabrai quips, reflecting his investment philosophy.
• Value Investment: Pabrai insists on investing in assets worth more than their purchase price.
• Moat: He emphasizes investing in companies with a competitive advantage.

Avoiding Startups and IPOs
Pabrai avoids startups and IPOs, focusing instead on established companies. He believes in waiting for the right opportunities rather than rushing into investments that may not yield returns. "The driver for me is not to get wealthy," he was quoted as saying. "The driver is to win the game."

Learning from Buffett and Munger
Pabrai has amplified Buffett's and Charlie Munger's value investment concepts. He meticulously studies and replicates their strategies. In 2008, Pabrai and his close friend Guy Spier paid $650,000 to secure a lunch meeting with Warren Buffett. Pabrai's dedication to learning from the best has been instrumental in his success.

Pabrai’s Net Worth and Philanthropy
As of June 2022, Mohnish Pabrai's net worth is Rs 1,185.62 crore. His fund has yielded an impressive return of 517% since its establishment in 1999. In March 2022, Warren Buffett himself praised Pabrai for his philanthropic endeavor, Dakshana.

Sharing Investment Wisdom
Pabrai shares his insights through recommended readings, including "100 to 1 in the Stock Market" by Thomas William Phelps and "100 Baggers" by Christopher Mayer. He advises investors to focus on value, make few but big bets, and understand the companies they invest in.

Conclusion
Mohnish Pabrai’s investment journey underscores the power of disciplined, value-based investing. By following and adapting Warren Buffett's principles, Pabrai has carved a niche for himself, demonstrating that strategic emulation can lead to substantial success in the investment world.

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