The Mohnish Pabrai Lecture @ MDI

Mohnish Pabrai delivered a wonderful talk in my class at MDI in December 2014 which you can see from here.

My favorite part of the video is when Mohnish talks about how he used what he had learnt while practicing value investing lessons to create and run his Dakshana Foundation. Over time, Dakshana has produced a stupendous track record. According to the Foundation’s Annual Report for 2013

Since inception in 2007, the IITs have accepted 631 Dakshana Scholars (out of a total universe of 1288 Dakshana Scholars) – a success rate of 49%. Not too shabby – considering that the IITs accept under 2% of applicants. In 2014, out of 259 Dakshana Scholars who took the IIT entrance test, 167 made it – a success rate of 64.4%. 


Mohnish invited a few Dakshana Scholars to attend his talk. Their presence and interaction with Mohnish made the experience all the more memorable and enriching.

3 thoughts on “The Mohnish Pabrai Lecture @ MDI”

  1. Dear Prof. Bakshi,

    Thank you!

    So grateful that you have chosen to be this generous with your knowledge over the years.

    At the 24:30 marker in the video, Mr. Pabrai highlights how share prices are different from the prices of productive assets like farmland and used cars.

    The question is why?

    Mr. Pabrai identifies the dynamics of faceless auctions vs. negotiated transactions. A point you’ve highlighted so many times in the past.

    Sir, was wondering if it has also to do with the nature of valuation. Are stocks inherently more difficult to value than other assets? So many great thinkers have tried – from Ben Graham to J.B. Williams, from the diffusion models of ‘asset pricing’ in neoclassical finance to Stephen Penman’s accounting based valuation.

    Is stock valuation inherently more intractable? Do the institutional and behavioral factors of stock markets only compound the problem?


    1. Dear Prof. Bakshi,

      Mr. Pabrai’s explanation of how he made Dakshana Foundation work (1:09:30 onwards) is genius.

      Feel silly about even asking the valuation question earlier! Misplaced priorities 😦

  2. As always thank you Sir for sharing the video !!! In this case a Big Thank you for letting me attend the lecture 😀
    Certainly Sir the highlight of the lecture was how Mohnish used his learning from value investing to create and run Dakshana,now one might want to partner an Intelligent fanatic or try to be a Intelligent fanatic himself or be someone who has nothing to do with investing or entrepreneurship still all of us have something to learn and emulate from value investing.
    There are lessons for life !!!

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