Episode 586: Shaan Puri sits down with Mohnish Pabrai for a rare interview about value investing.

Mohnish is sometimes called the "Indian Warren Buffett" for having turned $1M into over $1B+ through stock investing. In this podcast they talk about how founders can become great investors, how to avoid big mistakes, and lessons learned from Buffett & Munger.

Want to see Sam and Shaan’s smiling faces? Head to the MFM YouTube Channel and subscribe - http://tinyurl.com/5n7ftsy5

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Show Notes:

(0:00) Intro

(1:41) Why entrepreneurs make the best investors

(4:40) How Warren Buffett’s pre-paid for his college education

(9:56) Becoming Ben Graham’s Protege

(13:57) What Buffett learned about branding from See’s Candies

(17:53) Buffett’s failed play to be a candy mogul

(20:54) Identifying offering gaps

(21:47) Getting an MBA at age 14 as the son of an entrepreneur

(26:12) The 3 tells of a future millionaire

(28:49) Mohnish builds his first product with maxed out credit cards at 24

(31:21) The 168 hour framework

(33:56) “Entrepreneurs do not take risks”

(36:10) How Richard Branson launches Virgin Atlantic with no money

(39:09) How 0.1 percent of the population owns 70 percent of all the motels in America

(43:45) The unfair advantage of being a low-cost producer

(44:49) How Mohnish turned his first million into $13M in 5 years

(48:18) Pabrai Funds grows to $600M in assets in less than 10 years

(49:42) What Mohnish knows about fundraising that we don’t

(55:46) Pivoting from tech investments in 1999 to value investments

(58:50) $2M lunch with Warren Buffett

(1:04:15) Be a harsh grader of people

(1:08:09) The Givers, The Takers, and The Matchers

(1:11:30) “Heads I win, tails I don’t lose much”

(1:16:41) Private markets v public auctions

(1:21:15) The #1 trait that makes a great investor

(1:22:50) What people of Reddit think of Mohnish Pabrai

(1:24:26) Starting capital, annual rate of return, length of runway

(1:25:04) The rule of 72

(1;26:03) “The most important rule in life is how long something takes to double”

(1:30:21) Circle the Wagons Philosophy

(1:32:14) Losing $3B in one unfortunate event

(1:37:34) Be fearful when the world is greedy; Be greedy when the world is fearful

(1:38:34)What a value investor thinks of bitcoin

(1:39:50) Nick Sleep bets

(1:52:49) The Best Of: Capital Allocators

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Links:

• The Intelligent Investor - https://tinyurl.com/3jmpjrmc

• The Dhandho Investor - https://tinyurl.com/53p9bhfv

• Get HubSpot's Free AI-Powered Sales Hub: enhance support, retention, and revenue all in one place https://clickhubspot.com/sym

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Check Out Shaan's Stuff:

Need to hire? You should use the same service Shaan uses to hire developers, designers, & Virtual Assistants → it’s called Shepherd (tell ‘em Shaan sent you): https://bit.ly/SupportShepherd

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Check Out Sam's Stuff:

• Hampton - https://www.joinhampton.com/

• Ideation Bootcamp - https://www.ideationbootcamp.co/

• Copy That - https://copythat.com

• Hampton Wealth Survey - https://joinhampton.com/wealth

My First Million is a HubSpot Original Podcast // Brought to you by The HubSpot Podcast Network // Production by Arie Desormeaux // Editing by Ezra Bakker Trupiano