TIP812: Mohnish Pabrai: Berkshire & Letting Winners Run w/ Mohnish Pabrai

In this annual Berkshire Hathaway-focused episode of The Investor's Podcast, host Stig Brodersen sits down with renowned value investor Mohnish Pabrai to explore the future of Berkshire Hathaway under Greg Abel’s leadership and the enduring principles of long-term investing. Pabrai praises Abel’s balanced, hands-on yet non-intrusive management style, contrasting it with Warren Buffett’s more detached approach, and argues that Abel’s $25 million annual compensation is a bargain for shareholders. The conversation dives into the critical mistake investors make: selling winners too early, illustrated by Pabrai’s own story of exiting Frontline at 2x instead of holding for a 200x return. He shares how this lesson shaped his philosophy of letting exceptional businesses compound over time, even when they’re concentrated in his portfolio. Pabrai also discusses the power of the 4% rule—where a tiny fraction of great companies drives market returns—and how he applies this to his own funds, including the Pabrai Wagons ETF, which allows broader access while maintaining his core principles. The episode closes with a deeply personal reflection on his friendship with Charlie Munger, culminating in a poignant story about Munger’s final days and Pabrai’s belief that true connection comes from being truly seen—inspired by the movie Avatar’s theme, 'I see you.'