Mohnish Pabrai , a prominent value investor who manages approximately $900 million in assets through his Pabrai Investment Funds, has identified a simple mathematical concept he believes should be fundamental education for every investor: the Rule of 72.
During a recent appearance on The Diary of a CEO , a popular business podcast hosted by British entrepreneur Steven Bartlett, Pabrai emphasized the importance of this financial principle. The Rule of 72 is a simple way to help you calculate how long it takes money to double at a given interest rate.
“It’s a kind of a mathematical hack,” Pabrai said during the interview . “The rule of 72 is a very important rule, and I wish they would teach it more in high schools and elementary school.”
The formula works by dividing 72 by the