Mohnish Pabrai’s Q&A with London School of Economics on January 18, 2023 

Skillz lad.

Who, Mohnish or Munger? If you're going to pick a strategy to copy, it should probably be Mohnish, because he mostly focuses on smaller cap businesses like Warren Buffet did when he started off and eventually had too much capital and was forced to do large cap businesses. First thing you look at is revenue growth, then you look at the P/B ratio, then return on capital, then you look at gross income compared to net income. If net income is tiny or negative relative to gross income, you look at the total assets and total debt and see if the businesses is putting their gross income back into the business to pay down debt, or buying more assets. If net income is negative and they're not doing these things, they're not profitable and they're not building their business. Then you look at asset to debt ratio, usually you want no less than 2:1, but it depends on what sector the business is in. Then you look at share dilution and make sure the management is not over diluting the shares to cause share inflation and pull capital out of the shareholders. Sort of how the US federal government caused inflation, but we'll just pretend it was from Ukranian wheat exports. That's just the start, there's a lot more to it, but those things can screen in businesses you want to look into further pretty quickly, or those you want to throw away.

Still holding

He skims them and only reads the parts he is interested in.

Reysas

i don't think munger and value investors declare victory or defeat based on 1 year timeframes...

@@jc5688 *he(munger) said he was one of the biggest mistake