This is How Smart Investors Analyze Business Models | Investment Models - Part 03 | Mohnish Pabrai
Warren Buffett has long admired Coca-Cola's resilient business model, citing its enduring consumer appeal and global reach. He views Coca-Cola's emphasis on brand strength and distribution network as key factors driving its success over decades. Buffett often highlights the company's ability to generate consistent cash flow and its enduring competitive advantages as hallmarks of a superior business model.
Mohnish Pabrai's investment strategy is rooted in the principles of value investing, inspired by Warren Buffett's approach. He emphasizes the importance of finding undervalued stocks with strong fundamentals and long-term growth potential. Pabrai advocates for concentrated portfolios, investing heavily in a few carefully selected companies rather than diversifying broadly. His strategy also incorporates the concept of "cloning" successful investors by studying their methods and applying similar principles to his own investments.
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Пікірлер: 12
Mohnish is the best
@TheFinancialEconomics
Ай бұрын
Yes’s he is the best
When you work on something that only has the capacity to make you 5 dollars, it does not matter how much harder you work - the most you will make is 5 dollars.
@TheFinancialEconomics
Ай бұрын
Valid point
Buffett and Munger have advised the retail investor to opt for light capital business model stock. How do we classify if a company is operating in light capital business model? I have been thinking about that for long time but un-conclusive.
@TheFinancialEconomics
Ай бұрын
High ROE, ROA & nil to low capex requirement
@harikrishnanchandramohan4209
Ай бұрын
What is so hard to figure out commodity sector is capital intensive and consumer non-durables sectore is cpiatl light.
@TheFinancialEconomics
Ай бұрын
@@harikrishnanchandramohan4209 Yup! It all depends on what you are looking for.
@TheFinancialEconomics
Ай бұрын
@@vidya014 ROIC explains a lot
@vidya014
Ай бұрын
Capital Intensity (Academic formula) = Total Asset ÷ Revenue 1. Buffett and Munger said what taught in Business School are of little to no use in stock investing, that's why 9 out of 10 stock investors are losers. 2. Warren Buffett and Munger emphasize Asset Allocations. The hints from two wise guys inspire to dig into the balance sheets and perform logical research. My preferred anatomy: Finalized: :: Capital Light Business Model :: :: by the most stringent requirements :: Current Asset > Total Equity > Total Liability > Current Liability > Non-Current Asset + Non-Current Asset IF :: Total Asset BETTER STILL :: + Retained Profits > 50% of Total Equity + Double digit ROIC with ROIC > WACC If ROIC > (WACC + GDP Growth Rate + Inflation rate) is better still.