 Good day fellow investors! When Mornish Parbhai speaks I like to listen and he recently shared on LinkedIn an interview he gave for the Indian Economic Times. We're going to go through the interview and we're going to give five investing tips that I extracted from the interview that discuss also in deep explain some things from Mornish Parbhai. He is one of the greatest value investors out there so there is a lot to learn from him. The investing tips discussed are concentrated portfolio, free stocks that he owns make more than 50% of his total portfolio, 700 million under management, 400 million is invested in free stocks and he buys those listen carefully at the price earnings ratio of one or less. How can there be a price earnings ratio of one in this market? Well there can be, you just have to wait and you will learn how to do that how to find those stocks by the end of this video. Three reasons why investments don't work out so a very important checklist before investing in anything cloning stock investments also something very important to save a lot of time don't think about macro. He has no interest in the US anymore that changed five years ago before that he was 90% invested in the US and then finally take a nap so let's start with the concentrated portfolio and price earnings ratios of one. So Parbhai has a concentrated portfolio yes but he bought those stocks Fiat Chrysler, Rain Industries and Santec Realty to Indian companies when the price earnings ratios of those companies what he likes to say was below one not the current trailing price earnings ratio but the future potential price earnings ratio on the price he pays so he is really waiting for bargains to find something that can earn in one year what he pays for it. To do that you have to really look at unfavorable industries like the car industry in 2012 so he finds their companies that will not go bust and have a high potential to deliver high earnings in the future for example in 2012 he was buying Fiat Chrysler and his average in investing price is around four and you can see that it was even lower it was four but it was also below three so he really doesn't care about those short-term changes in price because he's looking for the long term so he paid around four to buy Fiat Chrysler now the stock is at 17 and on top of that you should add the Ferrari spin-off which is close to a market cap like Fiat Chrysler so there is double the return on this investment for Pabrai the current earnings per share is 2.21 if we deduct 40% of the 2012 purchase price as the value gotten from Ferrari we get two price earnings ratio close to one needless to say just look at the chart Fiat Chrysler is now at 17 it was at 25 he sold a little bit around 25 he lowered his position but he's still way way ahead and a great investment double the gain there as for finding such stocks Pabrai tells us how we have to keep our eyes open as such opportunities arise once every few years to quote what I found over a 1920 year investing history is that these what I call PE of once tend to show up an idea every two or three years the less similar opportunity he took advantage of was in Indian real estate in Mumbai he bought 10% of the company Suntech Realty and you can see the stock price exploded it's a five-bagger in the last two years so amazing opportunity he took advantage of in light of the demonetization crisis that hit India and real estate prices around Mumbai now on the three reasons why investments don't work out for investors the single biggest reason why investments don't work out for investors is leverage leverage is followed by misunderstanding on of what a mode is and thinking that the company has it he has gotten to those conclusions by studying a lot of great investors in the past so leverage big leverage really affects a company in a bad way then mode if there someone thinks there is a mode but there isn't and then it all boy boils down to management if the management is good if there is quality management then the company the business will have a high higher likelihood of succeeding and then we come to something very very important cloning stock investments looking for the portfolio crown jewels of other investors and here he discusses how he doesn't like the auto industry it is high capex there are unions there are consumer tastes and it's very difficult to invest but in 2012 he was studying other investors that invested in the auto industry where their largest position in 2012 was general motors and i made a video this week about David Einhorn you can check it in the card above on youtube how he his largest position is still general motors and that's why perhaps pub rye is still holding fiat chrysler however he looked at those colleagues that were invested in general motors he looked at the auto industry and only then he invested in fiat chrysler so he cloned the investment idea from somebody else this is something we shouldn't be ashamed of doing and he also is humbled to share with us that he found rain industries because someone sent him an extremely well-written report another indian stock no need to mention it is another five bagger and it was also even more than that more than a 10 bagger just a few months ago another tip don't think about macro investors should spend zero time thinking about macro anything just completely ignore it because it's hard enough to figure out the future of one business in almost all cases micro will trump macro in a major way i must say i agree with him however i also look at valuations i also look at opportunities and he also does that because he's also disclosing that he has a large cash position at the moment so he's also waiting for opportunities which means buying cheap businesses not that much looking at the macro environment nobody knows where when there will be the next recession what will happen with the economy what will happen with the trade wars etc etc all we can do is find great cheap great businesses that will deliver business returns to our portfolios and that's what also i am doing i have still a lot of cash waiting to be deployed in good opportunities however finding those opportunities requires lots of research and he has no interest in the us because the us is becoming harder and harder to invest in the number of stocks in the us declined from 820 years ago to less than 3500 there are more and more analysts following and it's harder and harder to find investing gems up to five years ago pubry was invested 80 to 90 percent in us stocks now his only us position is fiat Chrysler that isn't even a totally us stock and then another tip taken an afternoon nap pub rye believes you can increase your productivity by taking afternoon naps i don't need them i work through the afternoon also from the morning researching stocks but i think that many people would calm them themselves down by simply taking an afternoon nap and saying to yourself everything can wait i will work better and harder after the nap for some it works see if it works for you and if you're depriving yourself of improved efficiency if you don't take a nap even buffet he asked buffet when he was visiting him he asked him do you take an afternoon nap and do you have a room and buffet said yes buffet has an afternoon nap room in his office on the research that i'm doing now i'm currently looking at the complete list of chinese stocks traded in the united states so you can expect a lot of videos about chinese stocks i don't think there are price earnings ratios of one perhaps in the future i'll look at that too because i'm very very intrigued the last company i bought at the price earnings ratio of one was temig brazilian utility that was trading at one dollar per share two years ago and the earnings were there somewhere in line now they are below that but it was a price earnings ratio of one to needless to say the stock price exploded now on cloning investment ideas if you think that 200 hours of research that i spent on the stock market per month is worth more than 20 bucks for you for your time so if your 200 hours are worth more than 20 bucks per month and you like to get research reports research ideas investment ideas on stocks please check my stock market research platform the link is in the description below on youtube so see that there is a 30 day money back guarantee so that you have really nothing to lose and a lot of time to save as a stock market investing and stock markets research really requires a lot of time a lot of knowledge and a lot of experience like pubry has even this just checking what he is doing what iron horn is doing really takes a lot of time to have a clear idea on what they are doing and whether there are investment opportunities so to save time if you want let me do the research for you thank you for watching looking forward to have comments don't forget to check the iron horn video and subscribe because there will be more stock investments from iron horn from pubry and from what i find in china see you in the next video