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InvestED: The Rule #1 Investing Podcast

177- Investing Perspectives of Mohnish Pabrai: Owner Earnings

InvestED: The Rule #1 Investing Podcast

Phil Town & Danielle Town

Investing, Business

4.61.6K Ratings

🗓️ 28 August 2018

⏱️ 37 minutes

🧾️ Download transcript

Summary

This week on the InvestED we’re returning to our discussion of the investing perspectives of Mohnish Pabrai, specifically focusing on owner earnings. We’ll talk about what owner earnings can tell us about a business, and we will discuss the pros and cons of utilizing owner earnings when determining if you are buying a wonderful company. For show notes and more information, visit www.investedpodcast.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

This episode is brought to you by Pepsi Max. Christmas is great, but there's loads of ways to make it better.

0:08.0

Like sneaking some chili into the gravy for some extra ink,

0:12.0

or building a playlist that will even get your

0:14.8

nann up on the table or just cracking open an ice cold Pepsi Max. Christmas better with Pepsi Max Christmas.

0:23.0

Better with Pepsi Max. Hey everybody this is Phil Town and this is Danielle Town. Welcome to the

0:36.4

Invested Podcast where we try to break down what's going on with the greatest

0:41.3

investor in the world Warren Buffett how does he do it

0:44.2

How does he make those kind of returns and how do people who follow him seem to make those kind of returns also so that's

0:51.4

That's kind of cool and that's kind of cool. Yeah, that's kind of cool.

0:53.0

That's what we do here, where you teach me the Warren Buffett Charlie Munger style of value investing.

1:03.2

And last week, Dad, we played an interview

1:06.9

that I did with LJ Rittenhouse on investing

1:10.2

between the lines, her book, which was, I hope you guys all loved it, I thought it was so interesting.

1:17.2

And it meant we took a little break from our focus on Monish-Pabry's interview and everything fascinating that he spoke about in Forbes.com.

1:28.0

So we want to get back to that today, right?

1:30.0

Yeah, and LJ's work is so powerful. One of the hardest things that I do when I'm investing,

1:37.2

one of the hardest things I think you're going to find is trying to figure out how much we should trust the people who are running the company, particularly the CEO.

1:46.6

And LJ has some great, great clues.

1:49.2

So read that book.

1:50.3

It's a great book.

1:51.3

It is.

1:52.3

It is a really good book.

...

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