Mohnish Pabrai Lecture at Univ. of California, Irvine (UCI), May 24, 2016
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- In this talk, Mohnish discusses the three basic attributes an investor should possess to effectively beat the odds. 1. Patience 2. Decisiveness and 3.Being different from the crowd.
Mohnish reviews the multiple mental models behind Berkshire’s investment in Coca-Cola. Buffett’s lessons from his See’s Candies investment played a major role in his decision to invest in Coca-Cola.
Some of the factors that influenced Buffett’s investment in Coca-Cola include:
1. Coca-Cola was naturally a global company while Buffett had failed to make See’s Candies global.
2. The Coca-Cola drink lacks an after taste and that means one has the ability to consume Coke repeatedly, significantly more than candy.
3. Warren and Charlie read every annual report since Coca-Cola went public. Their insight was that unit case volume of Coke went up every single year despite the wars, stagflation and economic depression. They came to the conclusion that Coke was bullet proof.
4. Humans are creatures of habit and cannot change their habits especially when it comes to personal spaces like the mouth. This keeps competition at bay.
Mohnish also talks about several mental models used by Coca-Cola to advertise its products, including:
The Association tendency - Advertisements position Coke in an image where people are happy. Coke is associated with celebrities and major events around the world.
Social Proof tendency - Coca-Cola advertisements almost always try to show people having a good time with Coke.
00:00:00 Introduction
00:04:15 Traits of successful people
00:08:37 How do you make investment?
00:12:38 Buffett’s See’s Candies Investment
00:19:21 Difference between See’s candies and Coke
00:24:00 Long runway of Coke
00:34:15 Coca-Cola Model
00:44:19 Mental Model on Branding
00:52:40 Coke’s Management
01:02:52 Mental Model on How Human brains are screwed up
01:05:25 What not to do
01:13:00 Holy grail of investment
01:15:05 What’s a great business?
01:18:05 What Mohnish do as value investor
01:25:10 Biggest mistake as an investment
01:29:25 Indexing investing
01:32:00 Key to becoming wealthy
01:37:10 Insurance company business
01:39:22 Cloning
01:41:55 Pabrai Fund Model
01:45:10 TransTech
01:51:26 Challenge as an investor
01:56:20 Dakshana Foundation
02:00:50 Portfolio Diversification
02:03:08 Cash vs. Opportunities
02:10:20 Businesses that Mohnish admire
02:17:30 Doing what you love
The contents of this video are for educational and entertainment purposes only, and do not purport to be, and are not intended to be, financial, legal, accounting, tax or investment advice. Investments or strategies that are discussed may not be suitable for you, do not take into account your particular investment objectives, financial situation or needs and are not intended to provide investment advice or recommendations appropriate for you. Before making any investment or trade, consider whether it is suitable for you and consider seeking advice from your own financial or investment adviser.
Watching all your talks in the order they appeared and really enjoying it 🙏 thanks
Everytime I watch Mr. Pabrai's video, I learn something new. Such an inspiration. Thank you Sir.
S
Three traits of WB & Charlie that Peter Kaufman talked abput - i) Extreme Patience- Naturally, blissfully, guy who loves the paint try , ii) Extreme decisiveness, when the opportunity shows up & iii) Being different, not worried about what people think about you & no stress about it. Wonderful! I so agree, but couldn`t practice.
And now in 2022, Coca Cola own Costa, a coffee chain in Britain. It’s cemented my conviction. Love it!
Pabrai literally stood more than 2 hours for this presentation.
Without drinking a single drop of coke the same time.
You haven’t stood on your feet for 2 hours? It isn’t difficult. Lol.
@@grantguy8933 🤣🤣🤣🤣
@@MovieGasmit isn't that convenient or easy too
Watching in 2021. Fantastic stuff Mohnish. I listen to you every day
Llll
I find some people trashing Mohnish and others.Such people if not courteous enough to appreciate a person's efforts and generosity should at least have some dignity and not try to insult someone hiding behind the veneer of anonymity.
As for annual reports only investors are entitled for those,you or me have no right to have access. Should come as common sense.
@@anishsharma2038 what? You can pretty much find anything on the internet
😅😅😅😢ll
Super informative...Couldn't have asked for a better value for time than this lecture !!!
I read and watched a lot on investing. This is one of the best! Thanks for sharing it!
Thanks for sharing this video! For me, you nailed it when you said "You cannot be a weekend investor" and "indexing is perfectly fine".
Thank you Mohnish for giving us your time & effort!\
Thank you for uploading this video. Always something new to learn from Mohnish.
Mr. Pabrai thank you for teaching us. i cannot thank you enough for helping me in my investing journey. I look soo much upto you. Much love respect for being you. thank you for all the wisdom you spread around with your talks.
Monish thank you from bottom of my heart thank you soo much i heard all the lecture ughhh soo much knoweldge and wisdom.
Fantastic speech refreshed a lot of knowledge i had, and learnt tons of inside of being rich
Thank you very much Monish Pabrai for sharing your knowledge and thoughts! Kind regards from Germany
Dude is humble and on point.
Very inspiring analysis. Thank you. I'd like to add the fall of the iron curtain and the opening up of china, which brought new markets online right at the time of Berkshires investment.
Thanks for sharing Mohnish!
This man is very inspirational to me. Greetings from Germany
Thanks Monish. It was clear and very interesting.
mohnish such an amazing person
Thank you for the session
Thanks a lot. A very interesting view on the coke deal. I learned something new today :)
Amazing video amazing insights!
really understood coke ..thanks
Watched after reysas investment. Gr8 talk
Sir, You are genius.
Superb explanation.
Thank you very much
This specific video has an ungodly amount of ads in it! Its very distracting!
v good presentation v knowledgable
Thank You Mohnish
I wish I had watched this sooner, I could have understood the metaverse situation a lot better ,it was a new coke .
The analysis Buffett and Munger did was necessary to have the confidence to make such a large percentage of capial allocation.
Love from Bihar, India 💛🎉🎉
Right around this lecture time coke sales dropped by 10% due to consumer shifting of taste away from sugary drinks.
Love from Bihar,India 💛❤
2nd time 💛
I’m surprised nobody talks about this lecture on Twitter…
This man is smart af. He even calls the self driving cars😅
08:55 Pabrai talks about the Berkshire investment in Coca Cola
Starts to talk
Good speech by Mohnish.
The sugar is the time bomb 💣 down the road. A guy with Buffet as last name says a lot about his genetics.
Does anyone know where That 16x time profit + dividend come from?
Learnings from Horsehead holdings and Posco investment should have been part of the questionnaire
Creative storification at the best
What is the website he talks about to track investment portfolio of major investors ?
Dataroma
How TF is Buffet still alive drinking 5 cokes per day?
I'm watching this while drinking Pepsi xD
What a surprise he has only 41k subscriber
What a great money printing model Coke has! Thanks for your wonderful talk. You must have bought millions of shares of KO for investment purposes! No??
I need his list
once again thanks for the great lecture
what return would have been obtained today had the $25m been invested in a solid piece of Real Estate in California in 72 ?
During this video I felt like Mohnish is paid by The Coca Cola Company :-D. Realy great and deep thoughts about Coke.
what's the title of book by Peter Kaufman? Manashi likes? And what does he mean when he said he would just focus on C' s?
Poor Charlie's Almanac
See's Candy. A Berkshire Hathaway company
Anyone know where to find the GM annual reports? I can't find anything going back that far.
Edit: I actually did end up finding them through my university library!
Coke does exist in Cuba. It probably is more of a treat for local Cubans before coke grows dramatically there.
I have extreme respect for buffet and Pubrai, coke is a great stock / company, but it's not healthy to drink coke, no matter how physically fit or unfit you are.
U did one thing good DAKSHANA
so thats why it 32 a pound now sees is really good but really expensive for 23 pieces of candy
Whats the deal with 100,000 becoming 189,000 and Dow becoming 234,000?
There's something about how Mohnish Pabrai says "coke" that makes me want a coke...
Luzion protocol is the best project 2022
How can i meet you
What is the process???
Give me some money sir 😅😅
Resume@51:09
Where is India
At 1:31:00 Monish adresses what exactly has been bothering me A LOT. I work in taxes and when I spend couple hours reading some legal paperwork I get paid in the end. Completely different with investing, I have spent a lot of time reading financial statements, studying the company to not invest in the end. You don't feel the immediate results. But you learn during the process. Humans tend to seek instant gratification and sometimes research doesn't guarantee that.
Okay 😅l😢😅😢 1:06:30 😢😢😅😢😮😢
I feel charlie munger’s speech about glott’s is largely disliked because it’s an example of hindsight bias on steroids, you could do the same with apple or microsoft or anything. I personally don’t think that munger’s talk is all that remarkable
The lecture excludes comment on management of the company. He was Warren's neighbor. Many of the things are rationalizing stuff. Think 3 microeconomics model are enough. Warren was always scared of Inflation which this company addressed, stickiness was other and substitution was difficult due to economies of scale in distribution and advertising. Rest all is not SO necessary
1:56:00
1:30:00
How about using a bit more strength to speak little loudly?
Hi
Any teens?
This lecture is brought to you by Coca-Cola
The defense of adding unhealthy chemicals to your body is ridiculous
WHY RAIN INDUSTRIES DOWN HAVE U SOLD UR STAKE IN RAIN INDUSTRIES?
I will forever be indebted to you 😇 I was able to build a big income stream during the covid-19 pandemic investing with Mrs. Kathy Perez. You’ve changed my whole life, Thanks so much.
I hate that they replaced sugar with shi**y fructose. Since then I bought Coke only rarely. I wish they had more common sense and started to use sugar again. I would gladly pay more for suggar then for fructose or some crapy artificial sweetener.
Here in Texas, Coke is imported from Mexico where they still use Sugar.
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while watching this i felt thirsty but i had no money to buy coke ,so i made cheap coke at home ,,, And after drinking i felt guess what ? pee
This guy and the rich are so evil
Pabrai has under performed Nasdaq since 2004. A phenomenal salesman and a horrible investor. Please read his sec filings , there are a string of failures where he lost 90% or more
ZINC, HNR, CRYP, Delta financial...... and many others.
A big intellectual fraud.
Your comment is derisive and detracts from the important teachings Mohnish is imparting. I wonder what your vested interest is in bashing Mohnish? This is a very troll-like comment.
in the introduction the host says the money invested in pabrai s funds has grown 8 times in 16 years...I don't know how much Nasdaq has grown...but can you pl provide the exact number to substantiate your claim..
do yourself a favor and try to obtain Pabrai Funds annual report - it's pretty tough but possible.
Here you will find investment performance of his (four if I remember correctly) funds. In short - performance is a total disaster. Pabrai is nothing more than desperate speculator which dress up his "philosophy" in some kind of "value investing". He totally resembles Max Planck chauffer who learned by heart some stuff about physics but do not understand intrinsically how it works.
Most fund managers publish their total returns over 1 yr, 3 yrs, 5 yrs and 10 yrs. You can not find Mohnish's fund returns and details about he auditor. What is he hiding?
In his portfolio in India he has 4 companies, all of them have at least doubled from 2015. Rain industries which he bought at around 40/share is trading at around 370/share now. He has just bought a company and I am studying about the same and getting new insights everyday. So please do you study before commenting on somebody without facts.
You are wrongly promoting Coca-Cola that is an adulterated and unhealthy drink. Your examples aren't medically supported. A person drinking 5 Coca-Cola a day and Warren Buffett example are illogical.
Fantastic speech refreshed a lot of knowledge i had, and learnt tons of inside of being rich