Mohnish Pabrai Net Worth : $50 million
Mohnish Pabrais’s net worth is estimated at $50 million as of 2016. (Yes you have to read on to find out how he made it there!)
Who Exactly is Mohnish Pabrai?
Mohnish Pabrai is an immigrant from India in the U.S. who attended Clemson University and currently resides in Irving California. He is most well-known for founding Pabrai Investments Funds, a group of hedge funds designed to out perform markets for investors and build wealth. Pabrai was able to growth $1 million of investment capital in 2000 to over $500 million in Assets under management in 2016.
He has been able to achieve this success through the concept of value investing, which Warren Buffet also attributes much of his successful investing concepts to. Funny enough there is a book that plainly lays out these concepts
for anyone.
Life-long investor?
An interesting point about Pabrai that some of his followers to do not know, is that he was not heavily involved in investing early on in life. (Hopefully this will give some of you reading this with no investing experience some hope!)
Pabrai actually began his career in the technology world working for Tellabs from 1986-1991 in their data and sales groups, and then in 1991 started an IT consulting and systems integration firm TransTech. What I find most intriguing about this is that he utilized $30,000 of his own capital and put $70,000 of debt on his credit card in order to fund the growth of his company.
They say you need to take risks to start a company, and that is exactly what this man did.
Books – Invest like Pabrai
Pabrai has written two books that will teach you 100x more than many finance courses!
The first; The Dhandho Investor: The Low-Risk Value Method to High Returns
discusses Pabrai’s take on the concepts of value investing, with a focus on investment success for the common individual investor in language that is not difficult to understand.
His other work focuses on value investing, boiling down concepts presented by legendary investors Warren Buffet, Benjamin Graham, and Charlie Munger.
With this book he narrows down these investment concepts into simple and practical steps….The book is called Mosaic: Perspectives on Investing
.
These books carry a higher price tag than many finance books, but remember that with most resources you pay for the value that you receive. Pabrai understands that his books have a significant amount of useful information, and as a result he prices them according! This is a hint for those of you looking to start a business, pricing is very important and if you offer something of value, make the price match that.
Its Not About the Money
Pabrai is a man that understands money is important, but only to a certain extent. Him and his wife started the Dakshana foundation to give back to society with a goal of ending poverty in India. They have started to donate 2% of their wealth, or $1 million per year to this cause.
The math there will tell you that Mr. Pabrai has done well for himself financially, and although it is not a guarantee that you can become as wealthy as him, learning a thing or two about his investment strategy cannot hurt either!
Please only comment thoughtful and helpful questions or points to this post.
It’s interesting that he got a late start to investing, unlike Warren Buffet. That gives hope to those of us that are older! Seems to have always had the entrepreneurial mindset though. A real inspiration.