How did Mohnish Pobrai make his first million?
Mohnish made his first million when he sold his company, TransTech (an IT consulting and System integration firm) to Kurt Salmon Associates This is his story.
After his studies, Mohnish first worked with Tellabs, a global network technology company between 1986–91. While he was there, he started his own company with about US$30,000 from his own 401(k) account and US$70,000 from credit card debt. He later sold the company to Kurt Salmon Associates in 2000. That is how Mohnish made his first million.
In 1995, out of 1 million he had from the sale of his company, he invested 40 thousand dollars in four Indian stocks. One of the stock went more than 140X and he made another million through that. Mohnish turned 1 million dollars into 13 million dollars through investing in the next few years before he started Pobrai Fund.
In 1999, inspired by Warren Buffet, he started Pobrai Fund.
How Mohnish Met Warren Buffet
Every year, Warren Buffett auctions off a lunch meeting for charity through eBay, with the proceeds going to the Glide Foundation, a San Francisco-based organization that helps the homeless and those in need. The auction has become one of the most famous charity events in the finance world, and it attracts bids from all over the globe, particularly from investors eager to learn directly from Buffett.
In 2007, Mohnish Pabrai, along with his close friend and fellow investor Guy Spier, saw the auction as an opportunity to not only meet Buffett but also contribute to a good cause. Together, they decided to bid for the lunch. The auction was highly competitive, and the bids quickly rose into the hundreds of thousands of dollars. Ultimately, Pabrai and Spier won the auction with a final bid of $650,100.
Lunch With Warren Buffet
The much-anticipated lunch took place at Smith & Wollensky, a famous steakhouse in New York City, where Warren Buffett regularly dines with the winners of the auction. For Pabrai and Spier, this was more than just a meal—it was an opportunity to ask questions, seek advice, and gain insight into the mind of one of the greatest investors of all time.
Buffett, known for his humility and willingness to share wisdom, was open to discussing a wide range of topics. One of the key takeaways from the meeting was Buffett’s simplicity in approach. While Pabrai and Spier may have expected some hidden secrets or technical strategies, Buffett reinforced the importance of sticking to fundamentals, staying patient, and investing in businesses with long-term value.
Mohnish also founded the Dakshana Foundation in 2007 with the goal of providing education and scholarships to underprivileged students in India, primarily for IIT and medical entrance exams.
Image Attribution: AbrahamAumann, CC0, via Wikimedia Commons
