Mohnish Pabrai On Portfolio Construction And His 10 Commandments

In May, value investor Mohnish Pabrai took part in a Q&A session with students of the London Business School.

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The discussion covered many topics, including how the value investor looks at sizing positions in a portfolio.

Mohnish Pabrai On Portfolio Construction

When asked how he goes about allocating assets in a portfolio, Pabrai responded by saying that "if you talk to someone like Charlie Munger, he would say that you only need four stocks carefully selected."

The critical phrase here is carefully selected. The goal is to find businesses that have the best economics and not spend too much time worrying about factors such...