IN THIS EPISODE, YOU’LL LEARN:

• Whether Greg Abel’s compensation is fair
• Why most investments fail, and why that’s okay (the “4% rule”)
• Whether to own Berkshire Hathaway or the S&P500 over the next century 
• Why Stig thinks that Mohnish diversifies too much
• How Mohnish met Michael Burry
• Why good asset managers should eventually have 95% of their portfolio in one stock
• What Mohnish learned from his best friend Guy Spier

Disclosure: This episode and the resources on this page are for informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. For full disclosures, see link.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:03] Stig Brodersen: On today’s episode, I’m joined by Mohnish Pabrai for our annual conversation published over the Berkshire Hathaway weekend. We talk about what Berkshire might look like under Greg Abel, and why 25 million dollars in annual compensation is a bargain for shareholders. Later in the episode, we discuss the biggest mistake investors make selling the winners too early. Mohnish has a story about his frontline investment he sold that later, ran up 200 X, and what that taught him about patience and compounding.

[00:00:29] Stig Brodersen: We also touched on concentration, the S&P 500 versus Berkshire over the next decade and the next century. And then we end with my favorite part of the conversation. Money tells us this beautiful story about his friendship with Guy Spier.

[00:00:48] Intro: Since 2014, with more than 200 million downloads. We have interviewed the world’s best investors, studied deeply the principles of value investing, and uncovered many compelling investment opportunities. We focus on understanding businesses and intrinsic value, investing accordingly and sharing everything we learn with you. This show is not investment advice. It’s intended for informational and entertainment purposes only. All opinions expressed by hosts and guests are solely their own, and they may have investments in the securities discussed. Now for your host, Stig Brodersen.

[00:01:32] Stig Brodersen: You’re listening to the Investor’s podcast. I’m your host, Stig Brodersen, and today I’m here with no other than Mohnish Pabrai. Money is welcome to our annual banter here that will be published over the Berkshire weekend.

[00:01:45] Mohnish Pabrai: Stig, I always look forward to this. It’s like the pregame tailgate party. So always a pleasure to be here with you.

[00:01:53] Stig Brodersen: Wonderful. And so since this is the Berkshire weekend, I wanted to ask you a few questions about the company now. Greg Abel has arguably been running the operating businesses since 2018, when he became the vice chairman of non-insurance operations. And I think it’s safe to say that Greg is more hands on, whereas Buffett was inclined to. I think he said delegate almost to the point of application. So which CEO approach would you prefer if you were a Berkshire shareholder?

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BOOKS AND RESOURCES

• Join the exclusive ⁠⁠⁠TIP Mastermind Community⁠⁠⁠ to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
• Mohnish Pabrai’s ⁠website⁠.
• Learn more about Mohnish Pabrai’s ⁠Dakshana Foundation⁠.
• Our interviews with Mohnish Pabrai about ⁠Investing and Life Lessons⁠.
• Our interviews with Mohnish Pabrai about ⁠The Inner Scorecard⁠.
• Our interviews with Mohnish Pabrai about ⁠Masterclass Investing⁠. 
• Our interviews with Mohnish Pabrai about ⁠investing in stocks⁠.
• Related ⁠books⁠ mentioned in the podcast.
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