Otherforeign[Music][Music][Music] on behalf of the finance Club IIT Patnaon behalf of the finance Club IIT Patnaon behalf of the finance Club IIT Patna I'm madhurj and welcome you all to aI'm madhurj and welcome you all to aI'm madhurj and welcome you all to a very special guest session today we havevery special guest session today we havevery special guest session today we have Indian American investor Mr monisIndian American investor Mr monisIndian American investor Mr monis pabraiser as our guest who is thepabraiser as our guest who is thepabraiser as our guest who is the managing partner of public investmentmanaging partner of public investmentmanaging partner of public investment funds and the founder chairman of thefunds and the founder chairman of thefunds and the founder chairman of the the thinner Foundationthe thinner Foundationthe thinner Foundation he is also an anonymous of Harvardhe is also an anonymous of Harvardhe is also an anonymous of Harvard Business SchoolBusiness SchoolBusiness School he is a very reputed value investor inhe is a very reputed value investor inhe is a very reputed value investor in the whole world and has also worked andthe whole world and has also worked andthe whole world and has also worked and collaborated with top investors likecollaborated with top investors likecollaborated with top investors like Charlie Munger lilu Warren Buffett guysCharlie Munger lilu Warren Buffett guysCharlie Munger lilu Warren Buffett guys fire and many more this lesson will befire and many more this lesson will befire and many more this lesson will be in Q a format we are in the first halfin Q a format we are in the first halfin Q a format we are in the first half we will ask the collected questions andwe will ask the collected questions andwe will ask the collected questions and then in the second half audience membersthen in the second half audience membersthen in the second half audience members can raise their hands and ask theircan raise their hands and ask theircan raise their hands and ask their questions directlyquestions directlyquestions directly we are extremely honored and gratefulwe are extremely honored and gratefulwe are extremely honored and grateful that you have accepted our invitationthat you have accepted our invitationthat you have accepted our invitation and will share your insights andand will share your insights andand will share your insights and experiences with everyone today
Questionerexperiences with everyone today personally I am very inspired by you the Center Foundation initiative which is creating an unbelievable impact in India
Warrenwell mother it's a pleasure and honor to be with all of you I think this is my first recorded session with iitns that's wonderful so great to be with students at IIT Patna and look forward to speaking about what you have on your minds so let's get to it
Questionerso we observed that in last few years you have conducted conduct so many sessions with all the educational institutions in the world and you are very keen to share your learnings and experiences with everyone and it's really an honor for all of us to learn and interact directly from you
Warrenwell you know I have an ulterior motive for doing that because the best way to learn is to teach so what I'm really actually trying to do is just teach myself
Questionerto do is just teach myself and there's a side effect that some other people hopefully are learning a few things so it's a win-win works out well
Otheryes sir
Questionerso sir I think we can start with the collected questions so can you share your framework of identifying and analyzing deep value stocks especially in ignored Global markets like your investment in a turkey company
Otherwell I mean I I think that value comes in many shapes and forms and sizes and sometimes we can see the value very obviously in the numbers or the earnings or the stock price of a company and sometimes we have to dig a little bit so for example through most of its history Amazon either had very little earnings or if you look at the PE ratio for something like Amazon it might be around 100 or so and and the reality is that even if you had bought at that very high multiple you would had a spectacular
Todd Combsmultiple you would had a spectacular result because Amazon really wasn't trading at 100 times earnings basically what they were doing is they were they were running a very profitable business but they were taking the cash flows from that business and investing into the future and those cash flows were being invested in a very high return on Equity manner and so basically that is in general a superior business model to let's say a company like Google which doesn't appear to be that expensive relative to Amazon but does not have the same reinvestment engine so the really the only choice Google is left with is maybe to buy back stock and so on so basically value comes in many shapes and forms and sizes we can we can find some things which are sometimes priced very cheaply from an optical point of view and as long as the operations are stable
Questionerand as long as the operations are stable and maybe even growing if you're buying at a very cheap price the outcome may be good even if the business is not that great you know we were buying something at two times earnings and it should be might be worth 10 times earnings or so on and at other times like Amazon we could be paying a very high multiple and have an even better outcome so basically I think the the nature of of investing is that in terms of kind of finding Bargains or finding anomalies or finding things that are likely to be places where value hides one can look at some data points so for example going back to the Amazon example the first desk that Jeff Bezos had in his office was a converted door so he took a door made that the surface of his desk and just put some stand on it and he worked on that door desk for a long time and when Amazon established operations
Questionerand when Amazon established operations in India and the guy who came to run Amazon in India he used to be a shadow for Jeff Bezos for a couple of years basically Jeff Jeff has these Shadows who kind of like Apprentice learning everything he made his desk a door also and it was more symbolic obviously because you know Amazon could afford to buy but I think they symbolism was that it is a company that watches its pennies and even today at Amazon nobody is paid more than a hundred and seventy thousand dollar base salary so basically you know something like below like one and a half crore or so you know so the the the base salary the Amazon are the lowest amongst all its peers and of course people go go work there and they stay there for a long time but Jeff's perspective is that that money should be enough to live on and then the
Questionershould be enough to live on and then the upside can come from the stock andupside can come from the stock andupside can come from the stock and bonuses and other things but even cashbonuses and other things but even cashbonuses and other things but even cash bonuses arebonuses arebonuses are are low the main way Amazon compensatesare low the main way Amazon compensatesare low the main way Amazon compensates isisis to stock through stock option grants butto stock through stock option grants butto stock through stock option grants but even stock option grants on aeven stock option grants on aeven stock option grants on a company-wide basis you know manycompany-wide basis you know manycompany-wide basis you know many companies are diluting you know threecompanies are diluting you know threecompanies are diluting you know three percent five percent or more of theirpercent five percent or more of theirpercent five percent or more of their total shares outstanding every yeartotal shares outstanding every yeartotal shares outstanding every year as the stock based compensation Amazonas the stock based compensation Amazonas the stock based compensation Amazon that number has usually been one or twothat number has usually been one or twothat number has usually been one or two percentpercentpercent and Jeff Bezos himselfand Jeff Bezos himselfand Jeff Bezos himself has never never awarded himself anyhas never never awarded himself anyhas never never awarded himself any options so he's typically had a loweroptions so he's typically had a loweroptions so he's typically had a lower salarysalarysalary than even the 170 000 he hasn't had athan even the 170 000 he hasn't had athan even the 170 000 he hasn't had a bonus and he hasn't had stock options sobonus and he hasn't had stock options sobonus and he hasn't had stock options so when we look at anomalies you see on onewhen we look at anomalies you see on onewhen we look at anomalies you see on one side is a company that is really tightside is a company that is really tightside is a company that is really tight about how it spends its cashabout how it spends its cashabout how it spends its cash on the other side we look at theiron the other side we look at theiron the other side we look at their income statement and we see that theyincome statement and we see that theyincome statement and we see that they have no earnings and the third piece is
Todd Combshave no earnings and the third piece is that we know that many of their businesses are truly exceptional businesses so for example they have a large advertising business the cost of that advertising business approaches zero so the margins on their you know several billion dollars that are taking on Advertising could be somewhere between 50 to 90 percent so it's it's a very profitable business but those that money doesn't show up in the income statement when they do third-party Logistics the third party Bookseller and Amazon doesn't own the book but it manages the sale process that is a very profitable business for them because they have no inventory and they are providing services and probably the the margins or the return on capital of on that business is also very high but again that doesn't show up and of course Amazon web services
Questionerand of course Amazon web services is likely to be spectacularly profitable so we know that so the when you look at the company's financials you can see the revenue of all these businesses and you may even be able to see expenses of some of the businesses but you can definitely see the expenses of the whole company they may not break out expenses by each business but we can do an adjustment on that so we can say okay you know we think that the logistics business maybe has a you know 25 margin for example and we think the cloud business maybe has a 40 margin for example and we think advertising has a 60 or 70 margin and you can run those numbers and you can get to kind of more realistic picture earnings okay so let's go to the next question yes sir so what are some of your various Jacob is from both Charlie burger and Lilo which is a very rare and important
QuestionerLilo which is a very rare and important in investing journey I will show you the the most things I have learned from Charlie is not what he has said it is by observing him observing him in his own in his club with his friends with his family and observing how he organizes his time and and things like that and and so one of the things and this is probably true about both Warren and Charlie is when we are working on a particular problem they're very focused on that problem and they put all the energy and interest into that but after they have solved that problem or fixed the problem they completely eliminated from their minds and now this may seem obvious but what happens with other humans is other humans dwell in their brains on things that they have accomplished so so people like to think back oh I did so well in school I got these good grades I
Questionerwell in school I got these good grades I got good good GPA I got a good job Igot good good GPA I got a good job Igot good good GPA I got a good job I have a good wife and I am going I am youhave a good wife and I am going I am youhave a good wife and I am going I am you know got promoted so they're looking atknow got promoted so they're looking atknow got promoted so they're looking at the pastthe pastthe past they're looking at the past and dwellingthey're looking at the past and dwellingthey're looking at the past and dwelling on the paston the paston the past
WarrenLauren and Charlie have a very largeLauren and Charlie have a very largeLauren and Charlie have a very large body of accomplishmentsbody of accomplishmentsbody of accomplishments and the reason their body ofand the reason their body ofand the reason their body of accomplishments is so largeaccomplishments is so largeaccomplishments is so large is they never think about what they haveis they never think about what they haveis they never think about what they have already donealready donealready done and they never really even kind of youand they never really even kind of youand they never really even kind of you can say congratulate themselves aboutcan say congratulate themselves aboutcan say congratulate themselves about all their accomplishments what they areall their accomplishments what they areall their accomplishments what they are most focused onmost focused onmost focused on is the next problem in front of themis the next problem in front of themis the next problem in front of them so I will I will give you an example ofso I will I will give you an example ofso I will I will give you an example of of this particular phenomenaof this particular phenomenaof this particular phenomena there is a very large Ranch inthere is a very large Ranch inthere is a very large Ranch in CaliforniaCaliforniaCalifornia it is called Doheny Ranch and I'm justit is called Doheny Ranch and I'm justit is called Doheny Ranch and I'm just split up here for a second so I get thesplit up here for a second so I get thesplit up here for a second so I get the size rightsize rightsize right basicallybasicallybasically if you if you look at Doheny Ranch whichif you if you look at Doheny Ranch whichif you if you look at Doheny Ranch which is in central Californiais in central Californiais in central California it is tens of thousands of Acres
Warrenit is tens of thousands of Acres and it has two two miles of beachfront and it has two two miles of beachfront and it has two two miles of beachfront it is extremely valuable land it is extremely valuable land it is extremely valuable land I would say probably the market value of I would say probably the market value of I would say probably the market value of Doheny Ranch would be Doheny Ranch would be Doheny Ranch would be several billion dollars if we maybe several billion dollars if we maybe several billion dollars if we maybe north of 10 20 billion dollars north of 10 20 billion dollars north of 10 20 billion dollars and Charlie Charlie found out that the and Charlie Charlie found out that the and Charlie Charlie found out that the family that owned the ranch family that owned the ranch family that owned the ranch was interested in selling it was interested in selling it was interested in selling it and he contacted the family and he contacted the family and he contacted the family and and and he convinced them he convinced them he convinced them to sell the ranch to him to sell the ranch to him to sell the ranch to him for 75 million dollars for 75 million dollars for 75 million dollars which is which is which is less than less than less than one percent or even maybe one tenth of one percent or even maybe one tenth of one percent or even maybe one tenth of one percent of the real value of the of one percent of the real value of the of one percent of the real value of the of the property and what he told them is the property and what he told them is the property and what he told them is that look that look that look I will buy this for 75 million I will buy this for 75 million I will buy this for 75 million and the next day and the next day and the next day I will donate it to the University of I will donate it to the University of I will donate it to the University of California Santa Barbara California Santa Barbara California Santa Barbara and that ranch is and that ranch is and that ranch is eight minutes from the Santa Barbara eight minutes from the Santa Barbara eight minutes from the Santa Barbara campus UCSB campus if you build like a campus UCSB campus if you build like a campus UCSB campus if you build like a tram a tram system to go between the tram a tram system to go between the tram a tram system to go between the current Santa Barbara campus and this current Santa Barbara campus and this current Santa Barbara campus and this
Questionercurrent Santa Barbara campus and this new 20 000 Acres and he told the family that look the California Coastal commission which controls all development in the area they will never let you or any buyer which is a private party ever develop this property it will put so many roadblocks in front of you for decades that nothing will happen but here you can do a lot of good because of the University owns it they will be able to convince the state and other authorities to allow development because it is for the good of the people of California and amazingly that family agreed and Charlie bought that property for 75 million and the next day he donated it to the University of California Santa Barbara 300 years from now this particular transaction will have a massive positive impact on students at the University of California Santa Barbara basically the University of California
Warrenbasically the University of California Santa Barbara unlike all the other University of California campuses like Berkeley UCLA will never ever run out of land they will never no matter how much they grow have problems with student housing or anything they have plenty of they have land into perpetuity and it is very Prime land it's beautiful land you know with Hills and Valleys and beachfront and everything so Charlie got this done so Charlie got this done it is a very significant accomplishment he's never talked to me about it after that it was like for one time one day he talked he doesn't talk about it to anybody the media doesn't know about it okay and there are hundreds and hundreds of such things that these guys have done each is more powerful than the other but the concept of Not Looking Back not patting yourself on the back not wanting other people to Pat you on the back and just be a machine going forward
Otherback and just be a machine going forward and be a Karam Yogi where it is our duty to do our job it is not our duty to do a job to expect some reward in terms of people saying you're a great guy or you've done such a good job he doesn't really care about those things so this has been a very powerful lesson for me because I've actually seen how and I've seen it repeatedly he's designing student dorms and one time he said that this design that he has done for student dorms will eventually probably be used by hundreds of universities around the world it is very groundbreaking architecture after he was done with this he's never talked about done finished Buffett bought Geico became a great success doesn't care he bought the Burlington Northern Railroad which will be a property that even 100 years from now will be very powerful and and very important to Berkshire doesn't
Questionerand very important to Berkshire doesn't ever care or talk about it but he was very focused when that deal was happening so I also observed Charlie interacting with his kids with his grandkids with his daughter-in-law's son-in-laws grandkids great grandkids friends business partners I've seen a lot of interaction with all those people and normally what I find is if anyone is looking at all their family members every family has a lot of weird people this is not just my family every family my family has more weird people than most of the families but all families have strange weird crazy people and I don't think that situation is any different with the Monger family and I've seen Charlie interacting with all these people and he is able to maintain extremely good relationships and strong relationships even when the people are strange
Otherthe people are strange like he could just say Okay this person is strange I don't need to spend time with this person but so what I and and the other thing is about his friends so we cannot choose our family members we are going to end up with a lot of weirdos as our family member that's just the way it is but we can choose our friends and when I met Charlie's friends what I realized is that the quality of these individuals was extremely high it was much higher than any of my friends it was much higher than almost most humans I had ever met they were extremely high quality human individuals in fact I never met a single friend of Charlie's who was not a truly exceptional high-quality person and so that also taught me that having extremely high quality friends many of his friends are not wealthy they are just they might be just ordinary
Otherordinary in terms of net worth but they are very high quality and so I did two things one is I made all of Charlie's friends my friends because already quality is and the second is I have tried hard to apply that filter so when we have friends we have to be harsh graders very harsh graders there are lots of people we are friends with who are very you know appear very pleasant but they are actually useless they core qualities are useless we have to banish them from the kingdom we have to cut off all interaction very difficult to do but I have tried to do that I have my life has become a lot better because it has created room for other relationships so these are some of the some of the things it's not so much I think with Warren and Charlie so much is in the public domain so we can learn a lot without knowing them there's no need to know them to
Questionerthem there's no need to know them to learn from themlearn from themlearn from them and really the the main learnings I gotand really the the main learnings I gotand really the the main learnings I got from them was not what they were tellingfrom them was not what they were tellingfrom them was not what they were telling mememe because almost anything that they arebecause almost anything that they arebecause almost anything that they are telling me they have already said beforetelling me they have already said beforetelling me they have already said before it's really looking carefullyit's really looking carefullyit's really looking carefully and how they're living their livesthey are not obsessed about like thethey are not obsessed about like thethey are not obsessed about like the fame status all those aspects and how uhfame status all those aspects and how uhfame status all those aspects and how uh uh how dedicated they are by choosinguh how dedicated they are by choosinguh how dedicated they are by choosing their friends and surroundings so thattheir friends and surroundings so thattheir friends and surroundings so that uh it could be a good learninguh it could be a good learninguh it could be a good learning environment a lot of uh students like usenvironment a lot of uh students like usenvironment a lot of uh students like us can highly relate with the friends pointcan highly relate with the friends pointcan highly relate with the friends point because like most of us just uh becomebecause like most of us just uh becomebecause like most of us just uh become friends with anyone and your title spentfriends with anyone and your title spentfriends with anyone and your title spent with all of them and it's a really uhwith all of them and it's a really uhwith all of them and it's a really uh thing because like as it is said you arething because like as it is said you arething because like as it is said you are the average of the five percent that youthe average of the five percent that youthe average of the five percent that you spend most of your timespend most of your timespend most of your time it is a very important thingit is a very important thingit is a very important thing to carefully look at your friendshipsto carefully look at your friendshipsto carefully look at your friendships and get rid of the bottom 80 percentand get rid of the bottom 80 percent
Questionerand get rid of the bottom 80 percent maybe maybe get rid of the bottom 95 amaybe maybe get rid of the bottom 95 amaybe maybe get rid of the bottom 95 a very common follow-up question that mostvery common follow-up question that mostvery common follow-up question that most of us have on our topic is that likeof us have on our topic is that likeof us have on our topic is that like when we remove those bottom 95 or 99when we remove those bottom 95 or 99when we remove those bottom 95 or 99 percent then we hardly left with one orpercent then we hardly left with one orpercent then we hardly left with one or two person and since we have verytwo person and since we have verytwo person and since we have very limited surroundings it's very difficultlimited surroundings it's very difficultlimited surroundings it's very difficult to find really good high quality peopleto find really good high quality peopleto find really good high quality people in our life so how one can approach thatin our life so how one can approach thatin our life so how one can approach that situationsituationsituation
Otherforeigns to make for you one is my father useds to make for you one is my father useds to make for you one is my father used to sayto sayto say to live a very happy lifeto live a very happy lifeto live a very happy life one needs just one Good Wifeone needs just one Good Wifeone needs just one Good Wife and one good friendand one good friendand one good friend less is moreless is moreless is more and basically one does not need to goand basically one does not need to goand basically one does not need to go out and say let me find 10 great friendsout and say let me find 10 great friendsout and say let me find 10 great friends basically you just need one personbasically you just need one personbasically you just need one person and after you have one person who youand after you have one person who youand after you have one person who you think is truly exceptionalthink is truly exceptionalthink is truly exceptional and you have a good relationship and aand you have a good relationship and aand you have a good relationship and a deep relationship with that persondeep relationship with that persondeep relationship with that person after that you leave it to Nature andafter that you leave it to Nature andafter that you leave it to Nature and osmosis you know life will bring you inosmosis you know life will bring you in
Otherosmosis you know life will bring you in interactioninteractioninteraction with many many peoplewith many many peoplewith many many people and if you follow theand if you follow theand if you follow the notion of being a harsh gradernotion of being a harsh gradernotion of being a harsh grader then you will end up withthen you will end up withthen you will end up with more great relationshipsmore great relationshipsmore great relationships sososo I moved I moved to Austin Texas about 15I moved I moved to Austin Texas about 15I moved I moved to Austin Texas about 15 months agomonths agomonths ago and when I moved hereand when I moved hereand when I moved here I didn't know anyone hereI didn't know anyone hereI didn't know anyone here and my best friends are spread out alland my best friends are spread out alland my best friends are spread out all over the worldover the worldover the world even when I was in California they wereeven when I was in California they wereeven when I was in California they were spread out all over the world there werespread out all over the world there werespread out all over the world there were very fewvery fewvery few really close friends who lived close toreally close friends who lived close toreally close friends who lived close to mememe but I said okay let's run an experimentbut I said okay let's run an experimentbut I said okay let's run an experiment let's try to find as I said for surelet's try to find as I said for surelet's try to find as I said for sure they are great people in Austin Texasthey are great people in Austin Texasthey are great people in Austin Texas and it's a little nicer if you canand it's a little nicer if you canand it's a little nicer if you can interact with your friends in the sameinteract with your friends in the sameinteract with your friends in the same geography Etcgeography Etcgeography Etc so what I decided to do was that twice aso what I decided to do was that twice aso what I decided to do was that twice a monthmonthmonth different people reach out to me fordifferent people reach out to me fordifferent people reach out to me for different things and if something looksdifferent things and if something looksdifferent things and if something looks intriguing about the personintriguing about the personintriguing about the person I invite them to my homeI invite them to my homeI invite them to my home in the afternoon for Assam tea
Otherin the afternoon for Assam tea I make excellent Assam tea I make excellent Assam tea I make excellent Assam tea the best around it was taught to me by a the best around it was taught to me by a the best around it was taught to me by a very talented Pakistani chef very talented Pakistani chef very talented Pakistani chef in California so my Assam tea I know is in California so my Assam tea I know is in California so my Assam tea I know is exceptional exceptional exceptional so I would say that in the last year so I would say that in the last year so I would say that in the last year or 15 months or 15 months or 15 months I must have had maybe I must have had maybe I must have had maybe 25 or 35 25 or 35 25 or 35 people come through people come through people come through for assamti for assamti for assamti and there's only one person and there's only one person and there's only one person I invited back I invited back I invited back and then I invited him back again and then I invited him back again and then I invited him back again then I invited him back again and then I then I invited him back again and then I then I invited him back again and then I told him look told him look told him look every time with me we meet every time with me we meet every time with me we meet we meet for Assam tea we meet for Assam tea we meet for Assam tea and you have been in Austin for so long and you have been in Austin for so long and you have been in Austin for so long and you know this city so well and you know this city so well and you know this city so well you know we can go somewhere else we can you know we can go somewhere else we can you know we can go somewhere else we can have lunch somewhere we can have dinner have lunch somewhere we can have dinner have lunch somewhere we can have dinner somewhere we can go somewhere we can go somewhere we can go check out you know go for a walk check out you know go for a walk check out you know go for a walk somewhere so on somewhere so on somewhere so on he said the best place in Austin is a the said the best place in Austin is a the said the best place in Austin is at your place for Assam tea your place for Assam tea your place for Assam tea no other place is as good so I don't no other place is as good so I don't no other place is as good so I don't want to go any other place I just want want to go any other place I just want want to go any other place I just want to come here as often as you want us to
Otherto come here as often as you want us to meet so we continue meeting but basically the other people I met I think they are pretty high quality people some of them actually may be high quality very high quality people the thing is that there is no penalty or not letting a great person into your life but there is a penalty for letting a not so great person so I'm sure there were many of those 35 people who if I had spent more time with them they would have come across as being exceptional but because there are infinite number of humans on planet Earth it therefore mathematically follows that there are infinite number of great humans on planet Earth and since we don't need more than half a dozen one dozen great people out of infinity you can let great people you can make a mistake on great people and that's perfectly okay the important thing is to not make a
Warrenthe important thing is to not make a mistake of letting in or not so great people and so this person who I have met many times every time I've met him my opinion of him has gone up even higher and I've gotten to know him even better so in 15 months there was one person who passed the filters And if every 15 months one person passes that filter that's okay it's a great thing really good now there's a person coming tomorrow afternoon 15 chance here okay but that's okay three percent is better than zero so can you tell something uh that you've observed in lead to which makes him very special as very very less uh in public about him so I I asked Charlie I said Charlie you meet this Chinese person by accident and then you have never given other money managers money to manage and you give this person money to manage why did you do that so Charlie said it was a complete no-brainer
Warrenit was a complete no-brainer he said that all one had to do was look at the historic record with lilu and it became very obvious that I was dealing with someone highly unusual so lilu was a student leader at the Tiananmen Square protests in 1989. and the Tiananmen Square is one of one of the largest you know uprisings that took place in China in the last several decades he would have been one of the top four or five leaders student leaders who was heading that protest so when the Chinese government cracked down on tinemen with the tanks and everything else they had they wanted to arrest lilu and then we would never ever hear from lilu again it would be somewhere in some dungeon in China or his whole life and that'll be the end of Lilo some people were able to smuggle lilu out of China to Hong Kong and then some business people from Hong Kong helped him
QuestionerKong helped him come to the U.S and then Columbia University gave him a scholarship and he did three simultaneous degrees he did a law degree a MBA and a undergraduate degree all at the same time all three degrees he was near the top of his class and you have to remember when he came to the United States he did not speak a word of English so while not knowing English and starting those three degrees he was at the top of his class in all three degrees and in the history of Columbia University before or after lilu no one has accomplished that Columbia University and other supporters had funded his all his education and living expenses some loans and some grants to have him to his degree so what would happen at the beginning of the semester is he would get the money to pay his rent and his expenses and tuition and books and everything and he
Othertuition and books and everything and he would have sometimes this money which was a few thousand dollars for a few months before it was needed like they would give him money for four months for rent on day one while he was while the money was waiting in his bank account to be paid for rent and other things he invested that money and it wasn't a whole lot I mean I would say Colombia at that time would have been like 30 000 a year or something so they probably gave him like each year like 2500 a month or you know ten thousand dollars every three four months or something when he graduated from Colombia after three four years he had one million dollars with him so so he took the money they gave him he paid all the rent and tuition and everything else and with the float and the earnings on the float he made a million then after that he went into early stage venture
Charliethat he went into early stage venture capital Did extremely well with that and then he started investing so Charlie said I didn't really have to do much analysis on Lilo I could just look at the record and from the record it was obvious that I was dealing with someone who was highly unusual and who was going to do extremely well so lilu is a very focused person he's a a driven guy he's a natural leader and he is very comfortable in situations that might make other people uncomfortable so for example he used to have a lot of investments in Korea you know he doesn't speak Korean he has the same disadvantages in Korea than I do but he was able to navigate that country really well so in general when you're trying to figure people out do not listen to what they are saying just look at the track record just look at the history don't try to
Otherjust look at the history don't try to project forwardproject forwardproject forward and this is the same thing withand this is the same thing withand this is the same thing with companies don't look at what the companycompanies don't look at what the companycompanies don't look at what the company is saying they will dois saying they will dois saying they will do look at what the company has donelook at what the company has donelook at what the company has done this is really a very very amazingthis is really a very very amazingthis is really a very very amazing the lesson that youI heard about thisI heard about thisI heard about this year ago but I was often wondering likeyear ago but I was often wondering likeyear ago but I was often wondering like how did he manage all those unbelievablehow did he manage all those unbelievablehow did he manage all those unbelievable things together like like not knowingthings together like like not knowingthings together like like not knowing the language three degreesthe language three degreesthe language three degrees simultaneously and unbelievablesimultaneously and unbelievablesimultaneously and unbelievable investment performance at that time youinvestment performance at that time youinvestment performance at that time you know because he is aknow because he is aknow because he is a highly unusual person so I think inhighly unusual person so I think inhighly unusual person so I think in investing and in lifeinvesting and in lifeinvesting and in life we want to look for anomalieswe want to look for anomalieswe want to look for anomalies lilu is an anomaly hunger is an anomalylilu is an anomaly hunger is an anomalylilu is an anomaly hunger is an anomaly Buffett is an anomalyBuffett is an anomalyBuffett is an anomaly and we want to look for anomalies and weand we want to look for anomalies and weand we want to look for anomalies and we want to look for Investments that arewant to look for Investments that arewant to look for Investments that are anomaliesanomaliesanomalies like Amazon is an anomalylike Amazon is an anomalylike Amazon is an anomaly what are your thoughts about Chineselike there is dense risk due to Chineselike there is dense risk due to Chineselike there is dense risk due to Chinese government but they have been massivegovernment but they have been massivegovernment but they have been massive cash printing machines and the backbone
Questionercash printing machines and the backbone of Chinese economy for a really long time
Otheryeah those are very high quality businesses they are likely to do very well in the future but for me they've fall into the too hard pile so we have a lot of unpredictability with the leadership in China and we have a lot of unpredictability of well we do know that the political leaders of China do not want a second power base of people in China who may threaten them and it may be rational or irrational but that's how they look at things so when you have a I would say a factor that is kind of hard to forecast and it can have a huge impact on the investment then you know maybe staying away is appropriate but also people could do really well making those Investments so it's two each each his own so one of the biggest competitive economy the dollar being the global Reserve
Questionerthe dollar being the global Reserve currency for the last 70 years so recently India China and Russia two bricks and other ways have been trying to reduce the dollars and U.S is also facing high debt to GDP so along with the inflation do you think that it could be a turning point for countries like India for investment point of is difficult to get really creative opportunities in U.S
WarrenI don't expect in my lifetime or the us being the reserve currency to change so I'm going to die on June 11 2054. and we have about 31 years and one month left so I don't expect in the next three decades and probably Beyond there will be any change in the reserve currency of planet Earth the United States has an incredible number of strengths it has a number of problems which if it chooses to it can fix those problems relatively easy easily it's the only country in the world which
Otherit's the only country in the world which has imported an incredible talent pool from all over the world and it has also harnessed that talent pool extremely well we have a person like Elon Musk who was a finished product who came from South Africa who has created tremendous value for the United States we have you know Sergey brin's parents migrated from Russia we have so many IIT alums in the US who have done so well and it goes on and on so I think that I would never bet against the US and I don't think any other country for as far as I can see even a group of countries together can be the reserve currency once said that earning the first hundred or thousand dollar is a base and you have to do it no matter what so what could be some good and relevant ways for a college student to do that who wants to become a really successful investor
Questionerto become a really successful investor in his careerin his careerin his career I'm sorry I didn't get the first partI'm sorry I didn't get the first partI'm sorry I didn't get the first part what were you saying in the first partwhat were you saying in the first partwhat were you saying in the first part of the questiononce said that earning the first hundredonce said that earning the first hundredonce said that earning the first hundred thousand dollar is a and one hasthousand dollar is a and one hasthousand dollar is a and one has to do it no matter whatto do it no matter whatto do it no matter what so what could be some good and relevantso what could be some good and relevantso what could be some good and relevant ways for a college studentwellwellwell
OtherI mean theI mean theI mean the the surest way to accumulate a nest eggthe surest way to accumulate a nest eggthe surest way to accumulate a nest egg is to spend less than you earnis to spend less than you earnis to spend less than you earn and so we can definitely control aand so we can definitely control aand so we can definitely control a savings rate and we can invest thesavings rate and we can invest thesavings rate and we can invest the savings ratesavings ratesavings rate in you know mid cap small cup small capin you know mid cap small cup small capin you know mid cap small cup small cap Equity Index Fund in India for exampleEquity Index Fund in India for exampleEquity Index Fund in India for example and focus on you know improving ourand focus on you know improving ourand focus on you know improving our skills improving our incomeskills improving our incomeskills improving our income increasing our savingsincreasing our savingsincreasing our savings and you may get toand you may get toand you may get to 100 000 in savings100 000 in savings100 000 in savings in 10 15 years or lessin 10 15 years or lessin 10 15 years or less still be a young manstill be a young manstill be a young man and without taking much risk and thenand without taking much risk and thenand without taking much risk and then you can go from there what are youryou can go from there what are youryou can go from there what are your thoughts about algorithmic trading asthoughts about algorithmic trading asthoughts about algorithmic trading as well as Bitcoin because Bitcoin haswell as Bitcoin because Bitcoin haswell as Bitcoin because Bitcoin has already sustained last 14 years along
Questioneralready sustained last 14 years along with three to four beers Cycles successfully and it seems uh they it is showing quite a residency
Warrenyeah I mean I I don't have an interest in Bitcoin I think the people who invest in it will in the end be very sorry but it doesn't matter whether I'm right or wrong because I don't have a long or short position but I would say that bubbles are very common in in our environment and Bubbles can go on for a long time and whatever has happened in the history of Bitcoin does not necessarily mean that the future is great and algorithmic trading is outside my circular competence and all I can say is that I don't see any algorithmic Traders amongst the 10 or 20 richest people in the world and I see a lot of them with no net worth
Questionerwhat are your five favorite not so famous books for resources that have you
Questionerfamous books for resources that have you a lot in your investing Journey there's a book I I read recently which I thought was exceptional which is called what Darwin taught me about investing and extremely well written book it's a it's an IIT and who wrote the book he graduated from IIT Delhi Prasad that's an exceptional book and another book I I'm just finishing which I think is also a very good book is where the money is I forget the name of the author but that book came out I think last year and of course you know historically I have a button a lot out of poor Charlie's Almanac and the Buffett biographies and so on so these are some good books for my vantage point
Questionerhow can small routine may give a big returns like this 50 years or 100 as in the long run like what would be some good at least some of those companies
Questionerthe small investor has a big advantage over the large investor
Questionerover the large investor investing is one of the only disciplines where size is a disadvantage and and so therefore a comp a person working with very small amounts of capital can you invest in anything a person like Buffett really needs to put you know tens of billions to work at a time and that exceeds the market cap of almost all companies so the universe for Investing For Buffett is very small the universe for investing for small investor is extremely large and so a small investor has a huge advantage if they can harness that advantage and to harness the advantage they need to be focused on anomalies they need to be focused on things that are relatively small because you're going to generally have more mispricing amongst the smaller names and the larger names and someone who's willing to do the work you know willing to to basically roll up
Otheryou know willing to to basically roll up the sleeves and do the work did you wantthe sleeves and do the work did you wantthe sleeves and do the work did you want to open the floor to questions from theto open the floor to questions from theto open the floor to questions from the audienceaudienceaudience yesyesyes so now all these membersso now all these membersso now all these members members they canmembers they canmembers they can I will tell them to unlock one by oneI will tell them to unlock one by oneI will tell them to unlock one by one yes group is you can you can ask youryes group is you can you can ask youryes group is you can you can ask your question now what isquestion now what isquestion now what is suppose then you can ask your questionsat the time uh so my question wasat the time uh so my question wasat the time uh so my question was regarding a time at Trans Tech so youregarding a time at Trans Tech so youregarding a time at Trans Tech so you were kind of a retail investor back thenwere kind of a retail investor back thenwere kind of a retail investor back then so how was your process of looking atso how was your process of looking atso how was your process of looking at stocks back then and now since you'restocks back then and now since you'restocks back then and now since you're managing professionally how it hasmanaging professionally how it hasmanaging professionally how it has changed and another question is arechanged and another question is arechanged and another question is are modes quantifiable or you know we can domodes quantifiable or you know we can domodes quantifiable or you know we can do it quantitatively or it's alwaysit quantitatively or it's alwaysit quantitatively or it's always quantitative since you know manga andquantitative since you know manga andquantitative since you know manga and Charlie so closely how they do it andCharlie so closely how they do it andCharlie so closely how they do it and how we can advantage in that yeah so Ihow we can advantage in that yeah so Ihow we can advantage in that yeah so I
Questionerthink when I started my journey as anthink when I started my journey as anthink when I started my journey as an investor in the mid 90s the industry Iinvestor in the mid 90s the industry Iinvestor in the mid 90s the industry I was most familiar with was software andwas most familiar with was software andwas most familiar with was software and technology and of course we we know that
Todd Combstechnology and of course we we know that those Industries have generally speaking very high Returns on equity and high Returns on invested capital so those tend to be good places if you are not you know overpaying Etc and so basically that's where I focus my attention because it was within very much within my circular competence at the time and basically I I looked for at that time I was a just straight Buy and Hold investor I wanted to buy these great growing businesses and just hold them for a long time and one of the things that happened in 99 thereabouts is that I could see a lot of froth in the Market at that time I could probably see the bubble maybe a few months before most other people were aware of it the.com bubble was a very massive bubble and so in 99 or thereabouts I started to make a change to my investing style where I left Buy and Hold
Questionerwhere I left Buy and Hold in favor of Graham because I was noticing that very basic non-tech businesses had gotten really cheap while the tech businesses were getting you know really kind of euphoric in in market caps and pricing and that worked extremely well so basically when I started my journey as a professional investor in 99 I had mostly switched over to Graham and basically as the NASDAQ crashed and burned from 2000 to really took more than 10 years to get back to where it was probably funds did really well because we really didn't have any exposure to High Flyers Etc in fact the first year we were up 70 while the NASDAQ had already begun its crash and it couldn't need to crash for two more years and eventually lost 75 of its value while we continue to you know post analyze returns north of 30 percent so what I should have done is probably
Todd Combswhat I should have done is probably around the 2012 time frame or thereabouts I should have switched back to the great businesses we always better off investing in great businesses it's just that I was just seeing such egregious pricing that I was very concerned which was actually a good call because we would have been we wouldn't have done so well if we were holding a bunch of tech names in 2000 and but I had become so comfortable with these you know gram type bets that I really didn't start to make the switch till around 2020 so I basically eight years I would say was sub-optimal we still had some good Investments and such in that period but it could have been better if I had been more focused on the Buy and Hold and so on and of course that's where I am today I've actually basically almost come full circle I I don't have Tech Investments like I used to have in
Todd CombsTech Investments like I used to have in the mid 90s because it's it's still they were quite fairly priced I would say in the mid 90s and they started to get overpriced today we have so many more Savvy investors picking over these businesses they're coming public a lot later they're coming public at much richer valuations that the game is a lot harder on the tech side but I I look for those and I've definitely made this transition to buy and hold just haven't made the full transition to buy and hold in Tech at some point hopefully that will uh those opportunities will present themselves
Othernow rupees you can ask your question by unmuting yourself
Questionerhello hi uh good morning sir this is the this is the third time I'm interacting with you and first time that we are not in person mode so my question is what were the some of the most influential books uh in your life
Questionermost influential books uh in your life relates to investment of life in general
Questionerwell I think I think Almanac is a is a seminal work
QuestionerI also think that if you look at poor chalid Almanac and at the back of the book is a book list by Charlie Munger that's another great list of books
Questionerthe Buffett biographies are excellent
QuestionerI also think that all the archived annual meetings on buffett.cnbc.com where they've archived probably more than 25 30 years of meetings and each one is more than five hours is a tremendous resource
Questionerso I think and then of course the profit partnership letters and shareholder letters and such so I think that is kind of a good body of work to go through
Questionerand any suggestions for someone who is very at the very beginning level in the investment fields
Questioneryeah I would say poor Charlie's Almanac is a good place to start
Questionerokay
Otherokayokay you are muted madhurI am Daddy's home energy now you can askI am Daddy's home energy now you can askI am Daddy's home energy now you can ask your questionyour questionyour question hello am I Audiblehello am I Audiblehello am I Audible yesyesyes yes sir my question to you is that youyes sir my question to you is that youyes sir my question to you is that you have told us that we should surroundhave told us that we should surroundhave told us that we should surround ourselves from a high quality individualourselves from a high quality individualourselves from a high quality individual but in order to attract high qualitybut in order to attract high qualitybut in order to attract high quality individuals we should be high qualityindividuals we should be high qualityindividuals we should be high quality individuals in order to attract otherindividuals in order to attract otherindividuals in order to attract other high quality individuals because likehigh quality individuals because likehigh quality individuals because like attract life so sir what are yourattract life so sir what are yourattract life so sir what are your suggestions that how can we convertsuggestions that how can we convertsuggestions that how can we convert ourselves to high qualityourselves to high qualityourselves to high quality
Questionerwell you don't need to be high qualitywell you don't need to be high qualitywell you don't need to be high quality you just need to get people who areyou just need to get people who areyou just need to get people who are higher quality than youhigher quality than youhigher quality than you so it's all relative but but I would sayso it's all relative but but I would sayso it's all relative but but I would say that you know Buffett says that if youthat you know Buffett says that if youthat you know Buffett says that if you look at peoplelook at peoplelook at people and especially if you look at yourand especially if you look at yourand especially if you look at your classmates or people you're takingclassmates or people you're takingclassmates or people you're taking classes with on your hostel and so onclasses with on your hostel and so onclasses with on your hostel and so on look at the individuals that you admirelook at the individuals that you admirelook at the individuals that you admire the mostthe mostthe most and then ask yourself what are theand then ask yourself what are the
Otherand then ask yourself what are the qualities they have that are leading to that admiration and then ask yourself if you can incorporate some of those qualities into yourself so some of the base qualities I think is kindness is a very important trait I think there are no people who are kind who will die without friends so kindness is a is a great philosophy there is a book by Adam grant called give and take which is a great book to read and Adam Grant says that who's a he's now a good friend of mine he says that there are three kinds of people in the world there are the givers there are the takers and there are the matchers so so so the takers are the people you want to have nothing to do with so these are the people who are always trying to see what they can get from other people or they can extract from other people without any any any you know payback or you know
Otheryou know payback or you know reciprocation by them so those are the ones you should try to eliminate as soon as possible the takers the matchers are also people you don't want to have anything to do with they are basically kind of people who say okay you know madhur was nice to me he lent me some book of his I will also lend him some books someday so the matches also are all useless people so we don't want the matchers what we want in our lives are the givers and what we want to be in our lives are givers so the givers if you read that book basically it says these are people who are trying to help other people without looking for something to come back to them so they are just selflessly kind of like a Mother Teresa of course Mother series are the extreme example but they are selfless and in many ways Buffett and manga are selfless they are
OtherBuffett and manga are selfless they are they are giversthey are giversthey are givers and what we want to do in life is weand what we want to do in life is weand what we want to do in life is we want to surround ourselves with giverswant to surround ourselves with giverswant to surround ourselves with givers and we want to be a giverand we want to be a giverand we want to be a giver so we don't want to be doing exactso we don't want to be doing exactso we don't want to be doing exact mathematical analysis of what someonemathematical analysis of what someonemathematical analysis of what someone has done for you and therefore youhas done for you and therefore youhas done for you and therefore you should do the same you should be willingshould do the same you should be willingshould do the same you should be willing to do things for peopleto do things for peopleto do things for people whether they've done anything for you orwhether they've done anything for you orwhether they've done anything for you or notnotnot you knowyou knowyou know a lot of people tell me repeatedlya lot of people tell me repeatedlya lot of people tell me repeatedly that we should tell the dakshanathat we should tell the dakshanathat we should tell the dakshana scholarsscholarsscholars tototo donate some portion of their incomedonate some portion of their incomedonate some portion of their income to dakshana after they are doing wellto dakshana after they are doing wellto dakshana after they are doing well and we don't do thatand we don't do thatand we don't do that we actually do not talk to them at allwe actually do not talk to them at allwe actually do not talk to them at all aboutaboutabout anything related to helping dakshana oranything related to helping dakshana oranything related to helping dakshana or giving money deduction or any of that wegiving money deduction or any of that wegiving money deduction or any of that we don't do thatdon't do thatdon't do that now many of them do givenow many of them do givenow many of them do give donations to us they help us liaise withdonations to us they help us liaise withdonations to us they help us liaise with their companies and different thingstheir companies and different thingstheir companies and different things they do a lot of things for usthey do a lot of things for usthey do a lot of things for us they do it voluntarily right so the ones
Otherthey do it voluntarily right so the ones who are doing it voluntarily it's a signal those are probably the givers you know because they are in many cases they're giving disproportionate amount you know we have probably spent about twenty five hundred dollars or three thousand dollars on each of these books many of them have already given many times that to us and so they're not trying to match and we are not trying to tell them but we observe you know we observe because and then that becomes easy to sift through people and so on and so even even in dakshana we don't believe dakshana should be a mature organization or a taker organization it should be a giver organization and the rest will take care of itself and so it's it's perfectly fine yeah yeah yeah of like giving selflessly instead of just dating or just being involved in bargaining like I give to someone only if he or she has given to me or equal to
Otherif he or she has given to me or equal to that measure like a classical bargain thing there are some more people who have raised hands for asking questions but it's already one or so if you are available we can uh so we can keep going for some time let's take a couple more questions anyone else has our questions they can raise their hands and those who have already asked please lower your hand the pencil you can ask your question
Questionergood evening sir um and I met with you four years ago and at that time you did all the mathematics of rule of 72 and all those mathematics and how we can develop our money in four years by getting 18 percent and you told us that from second year onwards we can read a lot of books to learn about that how to make that 18 work and since then I'm reading a lot of books but right now I have two major questions
Questionerquestions which I would like to ask first question is that how to filter out the companies as
Otherbankram have said in the
Questionerintelligent investor that great Investments and great companies both are different and we need to look for the great Investments
Otherand create Investments are the Investments which Wall Street doesn't know
Questionerso yeah I mean I I think that the most important thing is to be patient the second thing is to be a student so basically we want to be students of business and we want to understand
Otherby the way I said that not second year but third year but that's okay you are a high achiever overachiever it's okay
Questionerbut basically we want to be students of business we want to understand businesses we want to understand what their you know economics and different things are and then after that we want to really look for what I would call anomalies which is that something is really standing out to you
Questionersomething is really standing out to you as not making sense as something which says to you that market doesn't understand this Market doesn't appreciate this and you have some understanding that the market does not and so on so for the most part most businesses don't fit those parameters but but because there are thousands of listed companies in India and outside India and we are only looking for maybe you know two three four of them and really only looking for one at a time it's a it's a treasure hunt and so I'll I'll give you us a story that that some of you may have heard is that when when Buffett was about 11 or 12 years old he used to go to the horse racing track in Omaha aksarban which is Nebraska's felt backwards and uh after all the races had been run and everything was over people had thrown you know all their tickets on the ground or in the garbage
Othertickets on the ground or in the garbage tickets on the ground or in the garbage he used to go through he used to go through he used to go through and pick up all the tickets and pick up all the tickets and pick up all the tickets that people had discarded in the hope that people had discarded in the hope that people had discarded in the hope that somebody who was drunk or something that somebody who was drunk or something that somebody who was drunk or something had thrown away a winning ticket so he had thrown away a winning ticket so he had thrown away a winning ticket so he would gather up thousands of these would gather up thousands of these would gather up thousands of these tickets then go home and then carefully tickets then go home and then carefully tickets then go home and then carefully look at each one and he would always look at each one and he would always look at each one and he would always find a few tickets where there was a it find a few tickets where there was a it find a few tickets where there was a it was a winning ticket or there was some was a winning ticket or there was some was a winning ticket or there was some money you could win but the person money you could win but the person money you could win but the person didn't understand or just threw it away didn't understand or just threw it away didn't understand or just threw it away and because he was under 18 he could not and because he was under 18 he could not and because he was under 18 he could not go to the window to claim the award he go to the window to claim the award he go to the window to claim the award he used to send his Aunt Alice so his Aunt used to send his Aunt Alice so his Aunt used to send his Aunt Alice so his Aunt Alice used to give her the winning Alice used to give her the winning Alice used to give her the winning tickets and then she would go claim it tickets and then she would go claim it tickets and then she would go claim it and give him the money and and then when and give him the money and and then when and give him the money and and then when he was in his mid-20s he used to go he was in his mid-20s he used to go he was in his mid-20s he used to go through something known as Moody's through something known as Moody's through something known as Moody's manual and and I have the manual and and I have the manual and and I have the man you'll hear I'll I'll see if I can man you'll hear I'll I'll see if I can
Otherman you'll hear I'll I'll see if I can just pull it up just give me a second
Otherjust pull it up just give me a second
Otherjust pull it up just give me a second so this is the Moody's manual that
Otherso this is the Moody's manual that
Otherso this is the Moody's manual that Buffett used to use in the 50s you can
OtherBuffett used to use in the 50s you can
OtherBuffett used to use in the 50s you can see it's a very thick book and if I open
Othersee it's a very thick book and if I open
Othersee it's a very thick book and if I open it for example you know it has
Otherit for example you know it has
Otherit for example you know it has a lot of
Othera lot of
Othera lot of numbers and details about different
Othernumbers and details about different
Othernumbers and details about different companies it's a lot of detail so there
Othercompanies it's a lot of detail so there
Othercompanies it's a lot of detail so there are a number of these Moody's manuals
Otherare a number of these Moody's manuals
Otherare a number of these Moody's manuals that came out every year
Otherthat came out every year
Otherthat came out every year Buffett went through every single page
OtherBuffett went through every single page
OtherBuffett went through every single page of
Otherof
Otherof these manuals more than once some of
Otherthese manuals more than once some of
Otherthese manuals more than once some of them we went to two or three times
Otherthem we went to two or three times
Otherthem we went to two or three times and after going through like thousand
Otherand after going through like thousand
Otherand after going through like thousand two thousand companies you would find
Othertwo thousand companies you would find
Othertwo thousand companies you would find some company where
Othersome company where
Othersome company where like market cap is 15 million and last
Otherlike market cap is 15 million and last
Otherlike market cap is 15 million and last year earnings are 25 million you know
Otheryear earnings are 25 million you know
Otheryear earnings are 25 million you know things that make no sense and then he
Otherthings that make no sense and then he
Otherthings that make no sense and then he would research though then he would buy
Otherwould research though then he would buy
Otherwould research though then he would buy those and he did really well so
Otherthose and he did really well so
Otherthose and he did really well so and he's continuing to do that you know
Otherand he's continuing to do that you know
Otherand he's continuing to do that you know in his life even more recently so he
Otherin his life even more recently so he
Otherin his life even more recently so he enjoyed the hunt
Otherenjoyed the hunt and so and so if you have a personality if you have a personality if you have a personality which is very determined and dogged which is very determined and dogged which is very determined and dogged about picking up thousands of these about picking up thousands of these about picking up thousands of these tickets and finding three tickets that tickets and finding three tickets that tickets and finding three tickets that may have you know may have you know may have you know twenty dollars or ten dollars or thirty twenty dollars or ten dollars or thirty twenty dollars or ten dollars or thirty dollars or something in winnings that dollars or something in winnings that dollars or something in winnings that someone didn't claim someone didn't claim someone didn't claim and you go through all the work of doing and you go through all the work of doing and you go through all the work of doing that or to go through these of these big that or to go through these of these big that or to go through these of these big thick manuals and you're looking for you thick manuals and you're looking for you thick manuals and you're looking for you know particular anomalies know particular anomalies know particular anomalies you will find them if you are you will find them if you are you will find them if you are though you know like the though you know like the though you know like the upanishad say upanishad say upanishad say as is your wish so is your will as is your wish so is your will as is your wish so is your will as is your will so is your deed and as as is your will so is your deed and as as is your will so is your deed and as is your deed is your deed is your deed so is your destiny so is your destiny so is your destiny and then the punch line your deepest and then the punch line your deepest and then the punch line your deepest desire is your destiny so if you really desire is your destiny so if you really desire is your destiny so if you really really are interested really are interested really are interested in finding in finding in finding needles and Haystacks and finding needles and Haystacks and finding needles and Haystacks and finding anomalies and you're focused on that anomalies and you're focused on that anomalies and you're focused on that don't let your grades fall at IIT but don't let your grades fall at IIT but don't let your grades fall at IIT but you can do that it's definitely
Questioneryou can do that it's definitely available for you to do that so one more question I have so I was watching your talk talk with the picking in peaking University students and in that talk you you had a lot of information about Mr Chand of madrasan Sumi and you had a lot of information about the rain Industries the management CEO of Indian institution and I was amazed that you are able to gather this information after so many difficulties you had lot of difficulties in meeting the CEO foreign Industries then I am actually slightly confused how we can get information about such CEOs or management people since we are very small
Charlieyeah we don't we don't need to meet them to get the information because we want to look at the track record and the track record is available in black and white so with brothers and Sumi we can look at the history and it's a large company so
Otherthe history and it's a large company so a lot of things have been written upon them so there's a lot of history available we are friends so that's good and I think I usually meet jagan once a year and and that's that's fine but those meetings are not really relevant in terms of the thesis for rain or you know the investment of rain or any of that I think that I'm much more focused on the history and the uh history of both these businesses will tell you a lot about the future
Questionerthank you sir sure and wish you all the best and say hello to all the dakshana scholars at IIT Patna actually that I am from uh you are like using digital technology to transcend Patna that's okay you can let your fellow classmates at Road Kino I said hello
Otherwhy don't we take one more question from manav
Questionerso I will ask one question like you did a lunch with bottle Buffet so what does one thing you will let us know about that particular length that you learned
Questionerthat particular length that you learned from him celebrate industry of all time from him celebrate industry of all time from him celebrate industry of all time yeah I mean the the lunch with Buffett yeah I mean the the lunch with Buffett yeah I mean the the lunch with Buffett turned out to be way better than I I turned out to be way better than I I turned out to be way better than I I ever thought I just wanted to meet him ever thought I just wanted to meet him ever thought I just wanted to meet him and thank him I didn't really have any and thank him I didn't really have any and thank him I didn't really have any expectations from that from that lunch expectations from that from that lunch expectations from that from that lunch it took place 15 years ago now in 2008 it took place 15 years ago now in 2008 it took place 15 years ago now in 2008 and you know one of the things that is and you know one of the things that is and you know one of the things that is important to buff it is that important to buff it is that important to buff it is that he knows that these lunches which the he knows that these lunches which the he knows that these lunches which the last one he did I think was last year last one he did I think was last year last one he did I think was last year he knows that these lunches are very he knows that these lunches are very he knows that these lunches are very important to the people who bid for them important to the people who bid for them important to the people who bid for them and win them and win them and win them and he wants them to feel like they got and he wants them to feel like they got and he wants them to feel like they got a bargain so I think last year the lunch a bargain so I think last year the lunch a bargain so I think last year the lunch went for 17 million dollars or 19 went for 17 million dollars or 19 went for 17 million dollars or 19 million dollars some large number million dollars some large number million dollars some large number but he's very focused on making sure the but he's very focused on making sure the but he's very focused on making sure the person thinks they got a bargain so person thinks they got a bargain so person thinks they got a bargain so when he came for the lunch he told us when he came for the lunch he told us when he came for the lunch he told us that look that look that look I have not I have not I have nothing going on on afternoon
OtherI have nothing going on on afternoon I can be here as long as you guys want and when you guys are sick and tired of me you can let me know and I'll leave so he didn't really set a time frame for all that lunch and after that lunch I had a few other lunches with some other like you know Tech CEOs and different things and it was very different experience you know they were in a hurry they met in the company cafeteria they had 45 minutes it was a very different experience with Buffett you feel like you're meeting your grandfather and what he tried to do is every question we asked him he tried to make it into a learning opportunity and of course what I did not expect to happen as a result of that launch was that there was a friendship development Warren he introduced us to Charlie Munger which led to a very deep friendship with Charlie Munger
WarrenI probably played you know maybe I don't know 30 or 50 times Bridge with Charlie on Fridays at his Club probably four or five hours each time including plus lunch every time and then dinner that is placed and so on so many things came out of that lunch which I had no expectations for it was again you know it's an example of the kind of the the givers end up ruling the world so my objective was only to give I didn't have any objective to receive anything but usually what happens is that when you're trying to selflessly give the universe conspires to help you and so there's a lesson there on on that as well and so yeah I mean it it worked out very well and you know I I'm just grateful that uh in fact we will look back at this time with some I think astonishment that we lived in the time of Warren and Charlie and it's kind of
Questionerof Warren and Charlie and it's kind of like living in the time of Gandhi or Einstein or Newton and you know going and meeting them for lunch or whatever you know that would be quite the experience yeah so no complaints life is great
Otherthank you
Otherthank you so shall we bring it to a close mother
Otheruh saying the ending note
Otherso first of default that like as you said like uh
Otherso overall on behalf of the entire team of the finance Club IIT Patna I would like to thank Mr monizer for such a truly insightful session I am certain that each and every person in the audience took a valuable insights from it I would also like to thank the audience for being so patient and enthusiastic today thank you everyone it was a pleasure to hang out with all of you thank you sir