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Mohnish Pabrai On The Ten Commandments Of Investment Management

Presentation and Q&A with Mohnish Pabrai on the ten commandments of investment management.

Ten Commandments

Mohnish Pabrai: The Ten Commandments Of Investment Management

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Transcript

Well Arvind it's always a pleasure and an honor. And you know in spite of all my past past issues and bloopers you keep calling me back which is great.

And the other thing is your you and your class are willing to serve as guinea pigs which is also really good. So this time I have a brand new top that I have never given before. So it is a first time first time I'm giving this which is which is exciting for me but hopefully it'll go were OK on your end.

And and everyone will like it as well is the ordeal good. It was. All right perfect. OK. So anyway you know you know a few thousand years ago we were told about Mozes going to the top of the mountain and then coming back with the commandments the Ten Commandments and that that story is slightly off.

So you know I have I have a lot of conversations with God and in one of my conversations you know he said that you know mornings when when Moses was coming down the mountain he dropped the tablets and they shattered into many different pieces. And so my commandments were lost. But he felt really bad and humanity was expecting these commandments so he made them up. And we've never had the real commandment. So he gave me the real commandments to usher onto the world through Arvind B class. And so that's what I'm going to try to do. And so God also said that he really wanted to focus the commandments on investment managers and not humanity. And unfortunately Moses cannot broaden the scope of the task he had been given.

And so these are the commandments for investment managers. And and and Moses was right there exactly ten commandments. He got that part correct. But anyway the the first commandment or you know I don't know. I don't know how long these are going to take to go through. So I'll try to I'll try to speed them along so that we have enough time for Q and A and such and and certainly if if if the flock is looking for more clarity on one or more commandments we can certainly do that during the Q and then. Anyway the first the first commandment is Thou shall not skim off the top and what what the Lord means by that is that you know one of the things that all these commandments is that the reason they are there being presented is that most most participants in the investment management business Weiley them.

And they are sinners. And so we are trying to improve the lot if you will. So skimming off the top basically is setting up an investment operation where you are either taking some percentage of fees as a fixed fee and in the case of hedge funds they're usually taking one or two percent of that off and they're adding.