Interview with Mohnish Pabrai – Forbes

Lessons From Buffett

Steve Forbes: Mohnish, thank you very much for joining us today.

Mohnish Pabrai: You're most welcome.

Forbes: You are one of the noted value investors, one of those who is an admirer of Warren Buffett. What did you take from Warren Buffett? And what do you do differently from Warren Buffett? You're not a clone.

Pabrai: Well, you know, we will never have another Warren. I think Warren is a very unique person. And also, I think that his investing prowess is so strong that many of his other attributes and, I would say, his other qualities get ignored. I believe the best things about Warren have nothing to do with investing. But they have everything to do with leading a great life. So many of the things, I think, most of the great things I've taken from Warren have more to do with life than investing.

Forbes: Such as?

Pabrai: Well, such as, you know, how to raise a family, interaction with friends, the importance of keeping your ego in check. You know, humility. Just a whole bunch of different attributes. The importance of candor, the importance of integrity. Just all these, the soft skills that are very important in life.

Forbes: They do interconnect. Now, in terms of how you approach an investment, you, I think, probably pay more attention to intangibles than perhaps Warren Buffett or Ben Graham might have done.

Pabrai: Well, Warren pays attention to intangibles, but Ben Graham was very much a tangible guy. And yeah, so we're looking at the qualitative as well as the quantitative. And yeah, so I would say that one way to look at that is to consider what Charlie Munger would call his latticework of mental models. So when you look at a business, look at it in a broader context of how it fits into the world. And sometimes, if you can see it in a light that the world is not seeing it in, that can give you an edge.

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