Thank you for sharing. I trust you more than I do with many. Charlie Munger was special guy. Hope we learn from you as you did from Charlie. I feel that if you leave earth with your knowledge. Nobody will know you lived here on earth. We all like to raise money for our favorite foundations or non-profit. I want to learn as much and apply this to foundation raise capital for infrastructure capital. i.e schools, supply for kids, addressing schools to job trainings. etc. Like you as a person Mohnish. Your a good man and we all have a lot to learn from where you been and what you have done. Long Live Charlie.
Ferrari's pricing power is truly amazing. Ferrari has one of the highest-quality customer bases in terms of passing on higher prices. It's also interesting to note that if Ferrari raises the price, the brand becomes even more desirable (so far, nothing new). Still, all these car collectors benefit from that because their collection also becomes more valuable. That's a truly incredible setup for a company to have.
In ten years the ICE vehicles will no longer be able to be registered in some states in the US. It's remarkable that even though people will not be able to buy them or sell them. However, those cars are still holding value.
Pabrai is just practicing his Turkish stock thesis lol, which is not relevant to the average Indian - try buying a Turkish stock through any brokerage. More useful if he says which broker he uses!
Merhaba I am from Turkey and have some money in our stock market and personally I wouldn't jump to Turkish stocks YET, since we have a currency that should lose like %30 more of its value in the near future to become more of a fair price but the government is prolonging the process of it by emptying the coffers of the country.
Great preso by Mohnish and thanks for sharing it Mohnish. While I regard you highly there is one thing that bothers me that you always use PE as a shorthand for valuation. There are obviously other metrics used “value investors” but using the PE ratio for entry and exists or even for discussion purposes gives away the thought process being very price dependent. Another point was the gentleman asking a question about “when to sell Varun Beverages after it has run up 5-6X… aren’t you thinking as a part owner of the business? If it’s your family business will you sell it because of the 5-6X multiple and go start another business from scratch?
In discussing Varun Beverages, it's evident that a good business is one you hold onto, as highlighted by the company's founder himself. However, Charlie Munger's wisdom reminds us that no business is without its limits in valuation. Even though a business may be exceptional, there comes a point where the price becomes unjustifiable. It's crucial to discern between a good price, a great price, and an overpriced or simply irrational valuation as investors. While premium businesses may warrant higher multiples, there's a ceiling to what's reasonable. Private businesses rarely experience the kind of hyper-inflated valuations seen in public equities. The market's response to news often drives short-term spikes, but the true value lies in understanding a company's competitive advantage, or its moat. Ultimately, whether as an owner or investor, the decision to sell hinges on a thorough assessment of valuation and the underlying fundamentals, rather than succumbing to market frenzy.
Monish has made it very clear that he is extremely price-sensitive and will not pay an exhorbitant price just because a business is absolutely wonderful. I do agree that PE might be an outdated metric to use, ans perhaps FCF might be more practical because as a business owner, what you care about it how much cash a business can produce for you after all expenses.
