Mohnish Pabrai's 10 Commandments Investment Strategy

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This video is a summary of a Mohnish Pabrai's talk where he shared his insights on investment management, drawing inspiration from diverse sources ranging from ancient scriptures to modern-day finance. Mr. Pabrai's discourse comes in the form of 10 focused commandments offering invaluable guidance for investors which includes:
1. Investment managers should avoid exploiting situations, particularly by charging excessive fees
2. Investing is an individual pursuit and Mohnish Pabrai emphasizes the importance of personal research and forming one's investment thesis rather than relying on others
3. Investing is an inexact science with a high error-rate
4. Pabrai suggests seeking companies with the potential to reach a PE ratio of 1, indicating significant upside potential
5. Investing decisions should be based on fundamental principles rather than complex financial models
6. Importance of resilience and resourcefulness in overcoming challenges, drawing parallels between personal and investment adversity.
7. Like Arjuna's focus in hitting the fish's eye, investors should concentrate on the core aspects of a business rather than being distracted by external noise.
8. Short-selling is viewed as speculative and risky, with potential for unlimited losses. Pabrai advises focusing on identifying robust companies with long-term growth prospects instead.
9. Financial independence and prudence are emphasized, advocating for living within one's means, avoiding debt, prioritizing savings, and investing wisely.
10. Pabrai encourages investors to replicate the strategies of successful investors and learn from their best ideas.

👉 Video Chapters:
00:00 Ten Commandments of Investing by Mohnish Pabrai
01:07 1. Thou Shalt Not Skim Off the Top
02:30 2. Thou Shalt Not Have an Investment Team
04:15 3. Thou Shalt Be Wrong Atleast One-Third of the Time
05:27 4. Thou Shalt Look for Hidden PE of One
07:41 5. Thou Shalt Never Use Excel
08:51 6. Thou Shalt Have a Rope to Climb Out of the Deepest Well
10:09 7. Thou Shalt Be Singularly Focused like Arjuna
11:40 8. Thou Shalt Never Short a Stock
12:30 9. Thou Shalt Not Be a Lender or Borrower
13:48 10. Thou Shalt Be a Shameless Cloner
12:56 Shankar's Viewpoint

#mohnishpabrai #investingstrategy #investingtips

Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links

[bezzzzzzzz]

Another amazing video; Shankar. Thank you for putting these out for us. ❤

[gisellmorales]

I love hearing your investing aproach and philosophies! Thank you very much!

[himanshur]

Thank you for providing such well made content Shankar Ji. I am always appreciative of various topics that you cover. Your channel deserves more followers who would benefit by absorbing and applying the teachings from this. Kindly consider making a video on Earnings guidance, its utility and interpretation.

[jayaramans]

As grasim enters paint market, can you share view on shalmer paints

[karth]

Sir

It is been said that as the fund size grows bigger the mutual fund manager have problem in investing

Then how about index fund, even index fund managers will face the similar issue right

Will there be problem in liquidity of index fund

I see when I invest in Nippon mid cap index fund, it take 3 days for fund to realize

[SAKSHAMCHAWLALKO]

Shankar sir - I am a beginner in the markets and love the way you present strategies. It would be highly beneficial for a lot of folks like me if you could make a video on how we can build a portfolio including various strategies based on different market caps and timeframes of holding along with rebalancing rules.
Appreciate your work a lot, thanks for creating :)

[IndiaNirvana]

Hi Shankar.
Really appreciate your efforts for such a value added contents. Can you also share your views on SME stocks which trade on lots.

[daayush]

You rightly gave JTL as one of the investing idea, but I saw promoter holdings having minor churns in last 6 months, but I was also looking at jyoti resins and it looks like promotors have bought stock @ around 2000 in the past despite highest share price not being that high, I checked for corporate actions if it was a split or something due to which the price was inflated, but didn't find any, so is it that I am mis interpreting the situation, if not there is a good investment option in my view (ofc not any recommendations). Would be great if you could share your quick thoughts on it Shankar sir

[tcxy]

amazing video sir.. i especially loved the concept of "PE of 1".

[rajeevroy]

Hi Shankar, Do Mutual funds follow these commandments fully or partly . Can you suggest a few cloners of the shameless cloner?,

[justkshitijnb]

Your videos are wonderful.. just one change.. instead of using closing sentence as UNTILL THEN... if you use UNTILL TEHN TAKE CARE OR SOMETHING OF THAT SORT.. just think...

[muthuram]

hi sir
pls explain
1. transmission of mutual fund units and tax ?
2. gift stocks and tax ?
pls make this video..thanks sir 🙏

[jayaramans]

Thanks for great info in newsletters. Can you share way to filter stocks to focus from basket? Imagicaaworld is not known to my group. How do you find this companies and track

[karth]

Please discuss about nifty midcap index fund vs active mid cap fund sir

[dbzchannelbypj]

We need another magic formula video ❤❤❤

[koool]

Small and micro cap selection, good picks now available, video on this please

[kunalzshah]

Try doing PE of 1 on our 90+ PE companies :)

[bhupisingh]

sir please hindi main video kar diya kro

[karthiksaadithya]

Strongly agree about excel. We all should use Google sheets 😂🙏

[randyas]

There has to be another commandment... Since we are on biblical references... Let's call it The Judas commandment thou shall invest only half of your decided amount in a stock as it is sure going to fall, if anyone on the retail side doubts it, check your portfolios. And the final truth is that as a retail investor the dice is set against you, essentially the market is set to fleece you. All the big name HNIs have their stories. Also Arjuna would have been well advised to focus where his arrow is aimed not on the fishes eye i.e. as in shooting, the eye needs to focus on foresight and target can be more hazy, check the direction of your investment the goal is incidental, yes there has to be a goal but secondary to the path/direction.