Mohnish Pabrai discusses three mental models in the spirit of Charlie Munger’s latticework of mental models in a lecture to the University of Puerto Rico MBA students in San Juan, Puerto Rico.

The three models include:

· The Power of Truth: Commit to candor, however painful or uncomfortable it may be. Being relentlessly truthful (and avoiding “white lies”) will strengthen your relationships with those around you in the long run.

· Compounding is the 8th Wonder of the World: Resist the temptation to pull money out of compounding accounts like 401(k)s; instead, leave them and let them compound over the longest runways possible.

· Dhandho Entrepreneurship: Take advantage of extracurricular time at your full-time job to first test your start-up ideas before quitting your day job to become the next Elon Musk. If you fail, you’ll still have a job. Heads you win, tails you don’t lose much!

Connect to Mohnish thru:

Twitter:   / mohnishpabrai  
Blog: https://www.chaiwithpabrai.com
Facebook:   / the-compounders-1758406194411620  

00:00:00 Introduction
00:01:41 Charlie’s Latticework of Mental Models
00:03:21 The Power of Truth
00:17:47 Compounding – the 8th Wonder
00:24:13 Factors of Compounding
00:34:15 Dhandho Entrepreneurship

The contents of this video are for educational and entertainment purposes only, and do not purport to be, and are not intended to be, financial, legal, accounting, tax or investment advice. Investments or strategies that are discussed may not be suitable for you, do not take into account your particular investment objectives, financial situation or needs and are not intended to provide investment advice or recommendations appropriate for you. Before making any investment or trade, consider whether it is suitable for you and consider seeking advice from your own financial or investment adviser.