Let’s dive into Mohnish Pabrai’s Spawner Framework.

Having Spawners in your portfolio can result in above average returns for the investor. Spawners are companies that continually give rise to related or unrelated businesses. ( eg. Amazon, Baidu, Alphabet)

Spawner companies continuously invest and incubate new businesses which have the potential to be massive growth engines in the future. This will result in many failures, for example Amazon’s Fire phone, thus this requires the company to be able to take failures in strides .

Types of Spawners

-create related businesses

-acquire businesses and nurture them into much larger enterprises

-create or buy new unrelated business

-continuously deploy the spawning tactics of all of the above 4 categories