Via Pragmatic Capitalism is this fascinating post at Market Folly (itself cribbed from Motley Fool…ah, blogs) which outlines the lessons�Charlie Munger and Warren Buffett imparted to value investor Mohnish Pabrai.�Pabrai, you may recall, won an auction to have lunch with the Berkshire Hathaway (BRKA) (BRKB) honchos.
The lessons he learned, as distilled by Market Folly, are thus:
- Carefully watch what other investors are doing
- “Look at the cannibals” – look at businesses buying back huge amounts of stock
- Carefully study spin-offs
- Avoid Leverage
- Be patient
Head over to Market Folly to read more about each point; as with much of how Berkshire invests, the advice seems fairly obvious and common-sense…maybe Munger and Buffett’s ultimate secret is simply how disciplined they are?
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