My interpretation of 10 commandments of investing management by Mohnish Pabrai
Mohnish Pabrai is one of my favourite value investors. He shared a relationship with Warren Buffett and Charlie Munger from Berkshire Harthaway. $BRK.B, $BRK.A. Mohnish Pabrai Pabrai Funds portfolio as of Q4/2021 This was the collection of his 10 commandments coming to investing. The source was https://www.gurufocus.com/news/753022/mohnish-pabrai-talks-about-the-10-commandments-of-investing and I have added my own thoughts in red italic fonts. Thou shall not skim off the top Pabrai thinks the fee structure in wealth and asset management is wrong. Most money managers are sinners. He takes issue with the fixed fee on assets under management. He specifically highlighted some original practitioners, Warren Buffett, who ran a 0/6/25 structure, and Munger, who ran a 0/33 type of structure. That means a 0% management fee and either 25% above a 6% hurdle or a 33% fee above a 0% hurdle. Personally, we should be rewarded with after delivered "agreed" results. There ...