7-step method used by the "Warren Buffet of India", Mohnish Pabrai, to earn ₹11,85,62,00,000 by copying the investing legend Warren Buffett: Please bookmark this thread

(1) When a P/E is 1, a company earns its market cap in a year. Mohnish Pabrai buys undervalued companies, such as Rain Industries, which had $2B revenue and a $200M market cap. Such mispricings can be very profitable for investors.

(2) Mohnish Pabrai suggests you shouldn't rely too much on spreadsheets. Instead, start with basic numbers: check the company’s revenue, free cash flow, and earnings compared to its market value. If the market cap is lower than its earnings potential, it’s a clear buy.

(3) Predicting a company's future is tricky, and mistakes occur, but you can still profit. If a stock increases 50% instead of tripling, it's still good. Value investors, such as Pabrai, buy stocks at a discount (half their estimated value) for a safety margin.

(4) Study successful investors to see how they pick stocks and manage investments. Still, make sure you do your own research and check the valuation yourself. If you just copy others without understanding, you might panic during market swings.

(5) Just like Arjuna focused only on the fish's eye, successful investing means cutting out the noise—ignore inflation, forecasts, and speculation. Focus on finding companies you understand and check if they're worth a lot more than their current price.

(4) Mohnish Pabrai’s dad, a risk-taker who faced bankruptcy multiple times, once paid an astrologer for a hopeful future reading. When Mohnish questioned it, his father said, “Always have a rope to climb out of a deep well.” When Pabrai’s fund dropped 70%, he imagined it growing to $1 billion and, remarkably, it did.

(6) Mohnish Pabrai believes shorting stocks is risky because you can lose more money if the stock goes up. Buffett and Munger are usually right about their picks but not the timing. Shorting means you need to be right about both.

(7) Don’t risk borrowed money on short-term trades or selling options without holding the stock. Play it safe and stay away from leverage.

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