Mohnish Pabrai (Billionaire Investor): The $100 Investment Hack That's Disappearing Fast! The Fastest Way To Financial Freedom!

**SPEAKER_1** (0:00)
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**Steven Bartlett** (0:30)
Why do they call you The Dhandho Investor?

**Mohnish Pabrai** (0:31)
It's a way of doing business and making money without taking risks. Like for example, Mr. Gates, Mr. Walton, Mr. Branson, all of these people followed these simple mental models. So if they won, they would win big. And if they lost, they'd lose nothing.

**Steven Bartlett** (0:47)
So I want to know everything.

**Mohnish Pabrai** (0:48)
Okay, let's start with this.

**SPEAKER_4** (0:51)
Mohnish Pabrai is the self-made millionaire who built one of the most respected investment firms in the world, managing over a billion dollars.

**SPEAKER_5** (0:58)
And now he's giving us the simple tools and frameworks to create life-changing wealth.

**Mohnish Pabrai** (1:03)
If humans understood that if I embark on a business in a format where the risk is close to zero, more people would do it. And that's what these mental models do. For example, cloning. We are taught if you want to start a business, you need to come up with something new. But actually, if you are a great cloner, you will be 90% ahead of the rest of humanity. And in fact, everything that Microsoft has done well at has come from copying someone on the outside. And then there's time. When you're starting a business, don't quit the day job because some other yo-yo is paying your rent. But it does mean that you need to find time to work on your business. But I will show you the perfect way to allocate your time. And that's not all. There's models like low-hanging fruit, skin in the game, givers versus takers, and the circle of competence. And I'll explain all of them.

**Steven Bartlett** (1:53)
What about investing? Because you're very well known for being an excellent investor.

**Mohnish Pabrai** (1:57)
There are three things that matter with investing. And there's also something known as the Rule Of 72 But I wish they would teach it more in high school. And it tells us how long it takes money to double. Now this is exciting.

**Steven Bartlett** (2:13)
Just give me 30 seconds of your time. Two things I wanted to say. The first thing is a huge thank you for listening and tuning into the show week after week. It means the world to all of us and this really is a dream that we absolutely never had and couldn't have imagined getting to this place. But secondly, it's a dream where we feel like we're only just getting started. And if you enjoy what we do here, please join the 24% of people that listen to this podcast regularly and follow us on this app. Here's a promise I'm going to make to you. I'm going to do everything in my power to make this show as good as I can now and into the future. We're going to deliver the guests that you want me to speak to and we're going to continue to keep doing all of the things you love about this show. Thank you.
Mohnish Pabrai, with the work that you do and the sort of public educating that you've done more recently in your career, what is the message you're trying to convey if you had to summarize that message and exactly who you're trying to convey it to?

**Mohnish Pabrai** (3:13)
It really depends on what message. There are a few different mental models that I've figured out over the last few decades. When you have kind of clarity on these mental models, and especially when you can start overlaying them, that's when you get one plus one becomes eleven. And so these mental models are not all in the same direction or in the same genre.

**Steven Bartlett** (3:45)
So just to pause there for a second. So the word mental models means it's basically a framework for thinking.

**Mohnish Pabrai** (3:51)
Yes.

**Steven Bartlett** (3:52)
So one framework for thinking is this idea of cloning. Yes. As one such example.

**Mohnish Pabrai** (3:57)
Yes. Let's take the mental model of cloning.

**Steven Bartlett** (4:00)
Cloning.

**Mohnish Pabrai** (4:01)
Cloning, right?
So what we are taught is that if you want to start a business, you need to come up with something new, something that hasn't been done before. But the reality is that the world will very easily accept three of the same thing, or five of the same thing. And usually it is an advantage to look at something that already exists and say, can another one of those exist, for example? Or can I take what's there and tweak it a little bit? So there's something peculiar in the human psyche, maybe going back into our history and our ancestral evolution, where humans look down upon cloning. But if you look at it, so for example, two of the greatest cloners, I think, in human history were Bill Gates and Sam Walton. Now, we think of Bill Gates as an innovator, and we think Sam Walton created Walmart, which was also new. But actually, they're both MeToo models. And Microsoft would not have existed without being a great cloner. So, when we look at Microsoft Word, it came from Word Perfect.