Rule #1 Finance Blog

With Investor Phil Town

InvestEd: Ep. 175- Investing Perspectives of Mohnish Pabrai (Part 4)

This week on InvestED we’ll continue our conversation about Mohnish Pabrai, discussing the similarities and differences between Mohnish and the other big investors. We will be focusing on Checklists like those of Pabrai, Munger and others, and we will talk about the importance of utilizing them when seeking out wonderful businesses on sale.

In Episode 175 You’ll Learn:

Checklists: The importance of following one’s own checklist:

    • By following your own checklist you can ensure your confidence in your research and business choices.
    • Pabrai and others maintain their own checklists, intentionally avoiding advisors to ensure they know everything about the company they are buying.
    • Pabrai has roughly 150 items on his checklist, which he refuses to publish to protect the integrity of his process.
    • Three of the most important things on a checklist:
      • Leverage/Debt
      • Management
      • MOAT

Investing with confidence:

    • Know everything there is to know about a company.
    • Study the mistakes made by great investors to avoid them in your own practice.
    • Rely on your own research of a business to protect your potential purchase.
    • Utilize a checklist to avoid any mistakes.
    • Refer to other investors to see what successful strategies you can incorporate into your own practice.

Show Notes:

  • Next time on InvestED:
    • Danielle interviews L.J. Rittenhouse, author of “Investing Between the Lines” for the InvestED bookclub

Danielle and Phil Recommend:

If you are considering using the Rule #1 strategy, the 4Ms Checklist is an absolute must. It will be your guide to mastery of the Rule #1 process from beginning to end. Get your free copy here now.

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On the InvestED podcast, Phil and his daughter Danielle shine a light on the successful investing strategies that gurus like Warren Buffett have used for 80 years. Listen in for a great stock market education on basics, learn how to invest on your own, and follow along with real-time examples and investing tips from week to week.

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