Collection: Mohnish Pabrai - #8 'Philanthropy'


Video Link: https://youtu.be/waI0FwXS_ZY


In this episode, Mohnish Pabrai explains on how is philanthropy same as investing and what is his philosophy of philanthropy?


In this episode, you’ll learn:

  • How is philanthropy same as investing?

  • Why Mohnish Pabrai chose education as his focus on philanthropy?

  • How Dakshana was started?

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

[Transcript]

MOHNISH PABRAI 00:07

Actually what you will find and I'll maybe digress for a few minutes and probably digress [Inaudible] going to it for a few minutes. What you'll find is it's the same as investing there is really no difference.


So my personal [Inaudible] of philanthropy, which I get to play out Dakshana are very simple. Basically, first of all I feel that – you know, my father used to say [Inaudible] when we come to world naked.


And so since we have leave the world naked then the question comes out that if you end up with more assets than you need what you do with them?


And probably a lot of time because of Warren Buffett's influence I think that for most people the best thing to do is to recycle back to society. And so if you decide that you want to recycle excess assets back to society. Then the question becomes how do you do that and what do you focus on?


And so some basic principles number one which comes to investing is that if you are looking at two different charitable endeavors; Endeavor A and Endeavor B. You want to be able to figure out which one delivers the higher and return to society. If you really understand it and once you figure out which one to the world was a higher return to society what you ought to do is put all of it into the higher return endeavor.


So the first think about philanthropy – my philosophy is you do not do sprinkling. You do not say I'll give some money here, I'll give some money here, I'll give some money to this temple and I'll some money here.


No because that is really not going to maximize and optimize what society benefit is. So first thing is, it has to go single cause and it has to go to the cause that has the highest possible returns.


And in my case, very easy to come to the conclusion that is likely with investments in education towards alleviation of poverty because I think that education has this a huge multiplier effect.


So then you get to the point of saying okay, I want to invest in education. I want to, instead of giving a person a fish and you feed him for a day. You teach a person to fish and you feed him for lifetime. So then the question comes out that if you want to teach fishing. What type of fisherman do you want to create?


And so the model Dakshana, I've adopted is a very high ROI model because we have a partnership with the government of India, they do most of the heavy lifting. And we get to add on top of a great model. And the returns I get on the funds that we invest, I think are off the charts.

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