Mental Models for Exceptional Capital Allocation by Mohnish Pabrai at The University of Nebraska, Omaha on May 1, 2026.

(00:00:00) - Introduction

(00:02:11) - Charlie Munger's mental models

(00:03:43) - Model 1: The Bedrock: Take a simple idea and take it seriously

(00:04:06) - Model 2: Ben Graham's Fundamentals

(00:04:59) - Model 3: Do not overdose on Ben Graham; Poor Charlie's Almanack, Philip Fisher, and Pulak Prasad

(00:05:16) - Model 4: Buffett's lifetime 20-punch card

(00:06:05) - Model 5: Stay in the epicentre of your circle of competence; John Arrillaga

(00:07:52) - Model 6: A high error rate is guaranteed in investing

(00:08:06) - Model 7: Circle the wagons: the 4% rule

(00:08:44) - Berkshire's 12 best decisions in 60 years

(00:09:41) - Mistakes in investing: Ferrari, Progressive Insurance & Goldman Sachs

(00:12:10) - Model 8: Do not cut flowers and water weeds

(00:13:02) - Model 9: Be a shameless cloner; VIC; Dataroma & SumZero

(00:15:11) - Model 10: History does not repeat itself - but it does rhyme

(00:16:16) - Model 11: Explain your investment thesis to a 10-year old in 3-4 sentences

(00:16:41) - Model 12: You always need a rope to get out of the deepest well

(00:20:50) - Model 13: Pursue quality intensely; Nick Sleep, Zen and the Art of Motorcycle Maintenance

(00:25:31) - Model 14: Thou shall not use Excel

(00:25:52) - Model 15: Develop and use a pre-investment checklist

(00:27:54) - Model 16: Be singularly focused like Arjuna

(00:29:31) - Read the footnotes; Turn every page: Robert Caro

(00:31:44) - Model 17: Enjoy hunting for needles in haystacks; Buffett's childhood entrepreneurial adventures

(00:33:41) - Japanese Company Handbook; My introduction to Charlie Munger & Debbie Bozanek

(00:38:02) - Model 18: Your deepest desire is your destiny

(00:41:15) - Model 19: You should always have someone to discuss your investment ideas with; Li Lu

(00:42:53) - Model 20: The mistress always looks hotter than the wife! 

(00:43:30) - Model 21: Neither a short-term borrower nor a long-term lender be

(00:43:54) - Model 22: Introduce randomness into your life; Peter Lynch's One up on Wall Street

(00:46:28) - Model 23: Be a Swiss Army knife

(00:46:36) - Model 24-26: Focus on spin-offs, uber cannibals & spawners

(00:47:18) - Model 27: Arbitrage is wonderful; Rupert Murdoch

(00:48:26) - Model 28: Heads I win, Tails I don't lose much!; IPSCO and CONSOL Energy

(00:51:43) - Model 29: Focus on low-risk; high uncertainty bets

(00:52:56) - Model 30: Do not skim off the top

(00:53:37) - Book recommendations: Poor Charlie's Almanack, Influence & Excellent advice for living

(00:54:48) - Importance of the Bedrock model

(00:55:30) - Finding great businesses

(00:58:11) - Focusing on my deepest desire

(00:59:23) - Berkshire Hathaway A-shares

(01:00:35) - Intrinsic value of a company

(01:02:17) - The Founders Podcast & Value Investors Club

(01:05:34) - Pursue your passion

(01:07:49) - Making of a Great American Capitalist by Lowenstein

(01:09:05) - Family-run businesses; Walmart

(01:10:24) - The Dakshana Foundation & Giving back

(01:12:45) - Micron

(01:13:43) - Warren's Too Hard pile & Charlie's pie-counter trips

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