In this video, Mohnish Pabrai explains why investors should not fear paying a higher valuation for exceptional compounding machines. He shares how companies like Amazon seemed expensive at every stage but rewarded investors with phenomenal returns. Pabrai emphasizes that great businesses often appear overvalued because the market underestimates their long-term compounding power. He warns that focusing too much on valuation metrics can lead investors to miss out on generational wealth creators. Instead of obsessing over P/E ratios, one should assess the company’s ability to reinvest and grow for decades. Pabrai uses Amazon as a prime example of a business where paying up was still a bargain in hindsight. He believes that spotting a long-term compounder is rarer and more valuable than finding a temporarily cheap stock. Time in the market with such businesses beats timing the market. This approach requires patience and conviction but pays off exponentially. Pabrai’s insights challenge conventional value investing principles and highlight the importance of business quality. Watch till the end to understand why paying premium prices for the right businesses is a winning strategy. Shop for Books on Wealth Build: 👇🏻 https://youtube.com/shopcollection/SCUCGqg2H6lZ8NMiq34wFZiu7FdvrPDI1E9hQ?si=g6XXANXRRt-4NQkW Watch our other video here: https://youtube.com/playlist?list=PLbQ3d6D-YJNYOvBIQMdxvdDSJXi51nZMG Connect with us here as well: https://www.facebook.com/TheFinancialEconomics/ https://www.instagram.com/the_financial_economics/ Applications & Software used: VSDC Video editor VEED.OI for Stock videos - https://www.veed.oi Business enquiries - financialeconomics30@gmail.com Disclaimer: Content shared on our channel are for educational purpose only and should not be treated as investment or trading advice. Please do your own analysis or take independent professional financial advice before making any investments based on your own personal circumstances. Investment in securities are subject to market risks, please carry out your due diligence before investing. And last but not the least, past performance is not indicative of future returns. #mohnishpabrai #compounding #stocks #multibagger #investmentstrategy #smallcapstocks #investment #investing #thefe #stockmarket