Mohnish Pabrai is an Indian-American businessman, investor, and philanthropist. He is also sometimes known as Indian Warren Buffet. In this video, he shares his six investing rules which have helped him generate a 25% CAGR for the last 18 years:
Rule 1 – Be a shameless cloner: copy the portfolio of successful investors whom you can trust
Rule 2 – Buy stocks with MOATs: Companies with an enduring competitive advantage earn better than average rate of return over an extended period
Rule 3 – You make money by waiting: Investing is 10% picking the right stock; 90% is patience
Rule 4 – Don’t engage in short selling: Trading or options
Rule 5 – Low risk, high uncertainty: Invest like entrepreneurs by minimizing risks while going after free lunches; focus on downside protection
Rule 6 - Have a checklist: Learnings from past mistakes to check the thoroughness of the analysis/investment thesis
Do see this video to understand more about the six investing rules
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