About this source
Mohnish Pabrai interviewed by Codie Sanchez on shameless cloning, low-risk asymmetric investing, anomaly hunting, and never selling compounding businesses.
Frameworks extracted
6 totalSTRdays
The 2x4 Test (Does It Blow You Away?)
A great business hits you in the head with a 2x4 — usually because one input in the equation is free or anomalous.
FINongoing
Total No-Brainers (Anomaly Hunting)
Auction-driven markets accentuate mispricing — wait for the weird thing that makes no sense, then bet big.
FINmonths
Upside Without Downside
Entrepreneurs don't take risk — they do everything in their power to minimise it. Heads I win, tails I don't lose much.
STRmonths
Shameless Cloning
You do not need original ideas to make money — copy proven models wholesale and don't change the working part.
FINdays
The Competitor-Tell Question
Ask a company's leadership which competitor they'd invest in if not their own — and which they'd short.
FINongoing
Don't Sell the Compounder
When you own a great business, don't sell it fully priced, don't sell it overpriced — only maybe when it's egregiously overpriced.