Collection: Mohnish Pabrai - #48 'Patience'


Video Link: https://youtu.be/CtM3-9PtMUg


In this episode, Mohnish Pabrai was asked whether he thinks being too patient in his approach cause miss opportunities as a result?


In this episode, you’ll learn:

  • How does Mohnish Pabrai invest in 2014?

  • How long does it normally take for a business to change?

  • The impatient Mohnish Pabrai.

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

[Transcript]

(Source: https://youtu.be/dnS5xWIxo1I)

MOHNISH PABRAI 00:08

I'm trying to be like those Fidelity account holders who forgotten they have an account.


Because I actually think I'm not patient enough, you know, I actually look at my portfolio and I truly think that I just went away for 10 years and took no actions on any of it. I think we'd be just doing incredibly well.


And I think one of the negatives in me is that unfortunately over the next 10 years, I know, I will sell stuff that I should not sell and I know I will buy stuff that I should not have bought.


So the very best thing I could do is, you know, just take a sabbatical and go bike riding with Guy Spier for the next 10 years. That's everything and then just forget about the fund and everything, and take it from there.


So actually, I think the problem is the other way around I think that I'm trying to become better at the patience's game, I think Warren is really good at it.


You know, the big issue and the big problem in the investing is, if you turn on CNBC and you see all those ticker symbol flashing by or you open a Bloomberg Terminal and you see all the red and green lights about that. All of that is telling you, you need to act now. The world is passing you by, you need to act now.


And the reality is that real business change happens over years and years, it doesn't happen over days, or weeks, or even months. It takes several years for that business change and business evolution to happen.


And so you really have to give – I mean, just to tell you how impatient I am.


I think there's only one stock in my portfolio, that is more than 3 years old. You know, to me that does not sound like ultra-patient behaviour. You think that's patient?


I didn't get a response Arvind. (Noise)


ARVIND NAVARATNAM 02:28

I see people shaking their head, they don't think you are patient.


MOHNISH PABRAI 02:33

Yeah exactly so you know, so basically I – I think the lesson I'm trying to get better and better at is being more patient.


One thing I actually like about Dhandho especially when we buy these wholly-owned businesses is we never sell them. And I think that's probably the best thing you could possibly do is never sell them.


So I mean, I have businesses in my portfolio that it would not surprise me that in 10 years are trading at 8 times / 10 times where they're trading today. And I hope I'm smart enough not to sell them before that time. But I don't have the confidence that I'm that smart.

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