Collection: Mohnish Pabrai - #145 'Politics and Investing Don't Mix'


Video Link: https://youtu.be/KYH-pf4LAPE


In this episode, Mohnish Pabrai was asked whether he would keep the same investing strategy under President Donald Trump's administration and how would he address that?


In this episode, you’ll learn:

  • Why politics and investing don't mix?

To check out all Collection: Mohnish Pabrai <click here>

 

[Transcript]

(Source: https://youtu.be/bLjoL5zhBxA)

AUDIENCE MEMBER 00:00

Hi, my name is Keena, undergraduate student at Paul Merage and just have a quick question about would you keep the same investing strategy under President Donald Trump's administration and how would you address that?


MOHNISH PABRAI 00:17

Yeah, that’s the great question. So actually the good news of the U.S. is our president are very little power. (Laughter)


So in the entire history of the United States, we got – we had a lot of pathetic presidents. We probably had more pathetic presidents than great presidents, but you could think back yourself, you know, who was the great president probably might not even get to all the fingers on two hands.


And so I don’t – I’m not necessarily convinced President Trump is not going to be a good president, time will tell, but I would just say that I don’t make investment decisions, I don’t think I’ve ever made any investment decision based on who’s in office.


I think quite frankly where Daehan Flour is trading in Korea has nothing to do with who’s in power, it has no relevance or where Frontline is trading or any of these other dynamics, it has really got nothing to do with who’s in power.


And so, I’ve never made investment decisions and I think it’s a stupid idea to make investment decisions based on, you know, who’s in power especially I think given our U.S. system of the strong checks and balances, I mean there’s a natural tendency to inaction unless a lot of parties agree.


And we’ve seen that over eight years in the Obama administration, we are seeing some of that right now and some of that is a negative where because we need – sometimes we do need action.


But the remarkable thing about the U.S. is that at specific points in time when everyone needs to come together like during the financial crisis and different thing and stimulus and all that is magically happened to actually agree and do a few things which is great.


So I would say it’s generally a mistake to spend time – but actually no, this is one of these kind of peculiar human traits is that everyone seems to I think spend too much time on the nuances of President Trump. It’s probably entertaining to spend that time but quite frankly that it’s not going to help your net worth.

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