MOHNISH PABRAI 00:00
The second is exactly like the first except these cannot be run by idiots. So these are businesses which are exactly like the first kind. Which is they have huge tailwinds, they have deep moats, they have ultra-long runways, they have high ROE, they don't need any debt but they need great management, and they do have great management.
So these are businesses like Amazon, Costco, GEICO, Amorepacific, Kotak Mahindra Bank – the one I bought in India which went up 60 times or something. Bluedart, which is the FedEx replica I bought in India.
Satyam the IT company, then Restaurant Brands which is the one that owns Burger King and Tim Hortons. McDonalds, Yum brands, Domino’s Pizza. These are all great businesses but they do need solid management on top of them to make sure that they can keep those franchises.
But these businesses have economics that are just phenomenal, just great economics. So that's the second type of business you want to keep and look for in your portfolio. And you get these massive runs as we saw with Bluedart and others in India.