Mohnish Pabrai > Quotes

“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.4 —Warren Buffett”
― Mohnish Pabrai, The Dhandho Investor: The Low-Risk Value Method to High Returns

“Einstein also recognized the power of simplicity, and it was the key to his breakthroughs in physics. He noted that the five ascending levels of intellect were, “Smart, Intelligent, Brilliant, Genius, Simple.” For Einstein, simplicity was simply the highest level of intellect.”
― Mohnish Pabrai, The Dhandho Investor: The Low-Risk Value Method to High Returns

“He bought an existing business with a well-defined business model and one with a long history of operations that he could analyze. This is waaaaaaaay less risky than doing a startup.”
― Mohnish Pabrai, The Dhandho Investor: The Low-Risk Value Method to High Returns

“Heads, I win; tails, I don’t lose much.”
― Mohnish Pabrai, The Dhandho Investor: The Low-Risk Value Method to High Returns

“You give but little when you give of your possessions. It is when you give of yourself that you truly give. For what are your possessions but things you keep and guard for fear you may need them tomorrow? . . . There are those who give little of the much they have—and they give it for recognition and their hidden desire makes their gift unwholesome. And there are those who give and know not pain in giving, nor do they seek joy, nor give with mindfulness of virtue.... Through the hands of such as these God speaks, and from behind their eyes He smiles upon the earth. You often say, “I would give but only to the deserving.” . . . Surely he who is worthy to receive his days and his nights is worthy of all else from you. And he who has deserved to drink from the ocean of life deserves to fill his cup from your little stream. See first that you yourself deserve to be a giver, and an instrument of giving. For in truth it is life that gives onto life—while you, who deem yourself a giver, are but a witness.2 —Kahlil Gibran”
― Mohnish Pabrai, The Dhandho Investor: The Low-Risk Value Method to High Returns

“After three years, if the investment is still underwater, the cause is virtually always a misjudgment on the intrinsic value of the business or its critical value drivers. It could also be because intrinsic value has indeed declined over the years. Don’t hesitate to take a realized loss once three years have passed. Such losses are your best teachers to becoming a better investor. While it is always best to learn vicariously from the mistakes of others, the lessons that really stick are ones we’ve stumbled though ourselves.”
― Mohnish Pabrai, The Dhandho Investor: The Low-Risk Value Method to High Returns

“Capitalism is greed driven.”
― Mohnish Pabrai, The Dhandho Investor: The Low-Risk Value Method to High Returns

“States are under Patel ownership. Having fully cornered the motel market, the Patels have begun buying higher-end hotels and have delved into a number of businesses where they can apply their lowest-cost operator model for unassailable competitive advantage—gas stations, Dunkin’ Donuts franchises, convenience stores (7-Elevens), and the like. Some have even branched out into developing high-end time-share condominiums. The snowball continues to roll down this very long hill—becoming bigger over”
― Mohnish Pabrai, The Dhandho Investor: The Low-Risk Value Method to High Returns