Mohnish Pabrai started with very little but through investing became a multimillionaire.He follows Warren Buffett's style of value investing.Just think about how much you could learn from someone who came from nothing and now has a net worth of over $100 million.How much would you spend to get insight from a successful investor who started late in life, had all the odds stacked against him, yet still made it big'Would you do what he did pay over $600,000 for just one lunchto learn from someone you feel has something to offer you'Fortunately, you dont have to cough up 6 figures to learn. You can read, think about, and apply the words of other people who have successfully done what youd like to do.Someone who has done exactly that is famous value investor Mohnish Pabrai.Growing up in India, he experienced the lowest of poverty. At 30 years of age, he was exposed to investing and heard aboutWarren Buffettfor the first time. His life has never been the same ever since.Mohnish Pabrai has some excellent thoughts about investing that are worth any serious investors consideration. There is much wisdom in what he has to say.Lets look at three of hisquotes, and explore the wisdom hidden underneath his words:1. Investing is a businessEntrepreneurs are great at dealing with uncertainty and also very good at minimizing risks. Thats the classic great entrepreneur.Mohnish PabraiToo many people view investing as something on the side that they do occasionally. They dont take it serious enough to get serious results.When Mohnish Pabrai speaks here of entrepreneurs, notice he is speaking to the common dilemmas of investorsuncertainty and risks.His words reveal that he doesnt view investing as a side hobby. He views it as a business.Anyone seriously looking to make a substantial income would do well to develop the mentality that this is a business. It is professional. It requires work, study, research, and patiencejust like the development of any other business.Thefather of value investing Benjamin Grahamsaid it himself: Investing is most successful when its most businesslike.Take investing seriously and you will end up seeing some serious returns.2. You can't accurately predict the futureIndustries with rapid change are the enemy of the investor. Tech businesses, particularly biotech, is a problem from that point of view. All industries work with change, but you should ideally be investing in businesses with a low rate of change, not a high rate of change.Mohnish PabraiValue investingmeans buying a stock for less than its true intrinsic value.A value investor determines a stocks trueintrinsic valueby projecting out all the cash that the business will generate from now into the future, and thendiscounting that cash back to the present day.See:Value Investing 101: How to Calculate Intrinsic ValueSo whenever you make an investment, you are also making aprediction about the future.There are some people who believe they can accurately predict the future. These people build complex models and buy stocks based on the assumption that their prediction about the future will come true.Then there are people who believe that the future is inherently unpredictable, no matter how good your current information is. These people do not make complex models. They buy stocks that are so undervalued, that any prediction about the future can be wildly off yet they will still make money off of their investment. These people, of course, are value investors.As Ben Graham wrote inThe Intelligent Investor:The more dependent the valuation becomes on anticipations of the future the more vulnerable it becomes to possible miscalculation and serious error.This is why value investors only invest when they have amargin of safety. They may make a prediction about the future, but they know that they will probably be wrong. The margin of safety protects them even when they are wrong.This is why Mohnish Pabrai said that industries with rapid change are the enemy of the investor. It makes it that much harder to predict that future and to calculate the intrinsic value of a stock. Therefore, if you invest in a tech stock, you will need a HUGE margin of safety. If you invest in a business that operates in a stable industry, you can invest with a smaller margin of safety.3. Patience is key"You dont make money when you buy stocks. And you dont make money when you sell stocks. You make money by waiting.Mohnish PabraiFinally, Mohnish Pabrai tells us that investing is a waiting game. According to him, you dont make money when you buy a stock and you dont make money by selling it. You make money by investing in undervalued stocks, and then waiting for the stocks price to converge with its true intrinsic value.Pabrai is also saying here that you make money by waiting for the right investment to come your way.Other famous value investors think the exact same way.Warren Buffett, for example,often compares investing to baseball, where youre given the luxury of waiting for the perfect pitch that you can then knock out of the ball park:The stock market is a no-called-strike game. You dont have to swing at everythingyou can wait for your pitch.The problem when youre a money manager is that your fans keep yelling, swing, you bum!Warren BuffettWhats nice about investing is you dont have to swing at pitches.You can watch pitches come in one inch above or one inch below your navel and you dont have to swing. No umpire is going to call you out.You can wait for the pitch you want.Warren BuffettFinal thoughtsWhen you investing, it is wise to approach it seriously. Treat it like a professional. Put on your entrepreneur hat because your investing is a business. Treat it like one and it will surely treat you well in return, literally.Remember that you cant accurately predict the future. Even sure things have probabilities of less than 100%. We see this happen time and again (for example, the 2016 U.S. Presidential Election). Recognize this and invest with a margin of safety.Finally, be patient. As VanguardsJack Boglelikes to say, Dont do something! Just stand there! Wait for the right investment to come your way, and then when it does wait for the market to realize the stocks true intrinsic value.For more information onvalue investing,Mohnish Pabrai, andother great value investorsbe sure to check out all of the awesome resources atVintageValueInvesting.com.SEE ALSO:The hottest investment product in the world has a huge catchJoin the conversation about this storyNOW WATCH: 6 airline industry secrets that will help you fly like a pro
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