Mohnish Pabrai

Mohnish Pabrai

Last Update: 02-13-2017

Number of Stocks: 7
Number of New Stocks: 0

Total Value: $347 Mil
Q/Q Turnover: 1%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Mohnish Pabrai Watch

  • How to Steal Another Investor’s Style

    Someone emailed me this question:

    “Many investors seem to be characterized by a single distinctive style throughout their careers. How can we train to be good at all the following — great-businesses-at-fair-prices-type, special-situation-type, net-net-type — depending on the opportunities that the market presents at any point in time so that we can outperform the market most of the time?”


  • Buyback ETF Could Be Worth Following

    Generally speaking, I tend to stay away from the ETF space as an investor. There are thousands of ETF products, which makes it difficult to choose the one that best fits my investing goals, and the product itself is not without its drawbacks. Personally, I will either choose a tracker fund or individual stocks.

    However, the one ETF that recently caught my eye is the Dhandho Junoon ETF, which is interesting because it is managed by the same firm that is owned by well-known and respected value investor Mohnish Pabrai (Trades, Portfolio).


  • What Is Value Gurus' Most Loved Stock?

    Investing alongside the world’s top value investors, or super investors, can be a profitable strategy if you know what you’re doing.

    Combing through super investor ideas and then conducting your own research to arrive at a suitable conclusion without blindly following hedge fund managers is the best way to go about this, and the best place to look for ideas is in 13F SEC filings, which are easy to access and understand.


  • Does Mohnish Pabrai Expect GM to Double?

    Barron’s published a great article featuring guru Mohnish Pabrai (Trades, Portfolio) discussing his investments in General Motors (NYSE:GM) warrants, Fiat Chrysler Automobiles (NYSE:FCAU) and Southwest Airlines (NYSE:LUV). Today, I will review Pabrai's case for General Motors as it looks like a highly compelling opportunity. Pabrai's discussion on GM with Barron's (emphasis mine):


  • 23 Questions With Mike Price

    1. How and why did you get started investing? What is your background?

    I was 13 years old at a conference for salesmen that my mom brought me to because Joe Montana would be there. Phil Town presented on some technical analysis software by Investools. I never got into that, but I got some investing books at the library, started reading on the Motley Fool website and stumbled on to Warren Buffett (Trades, Portfolio).


  • 24 Questions With Value Investor Jacob Taylor of the UC Davis Graduate School of Management

    1. How and why did you get started investing? What is your background?

    In a past life I ran the power grid for the state of California. I enrolled in UC Davis' MBA program as a working professional to keep my career options open. Through the school, I ended up winning a lottery to have lunch with Warren Buffett (Trades, Portfolio). We had a lengthy question and answer session at Berkshire Hathaway's (NYSE:BRK.A)(NYSE:BRK.B) headquarters before Buffett treated us to steaks at Gorat's. He had a well-thought-out, articulate answer to any question we lobbed at him. I was incredibly inspired. On the plane ride home, I kept asking myself one question: how had one man accumulated so much knowledge? I started reading everything about him I could get my hands on to answer that question. I had always been interested in saving and investing, but I never had a true framework until I stumbled into value investing. After years of study, I eventually transitioned careers and founded Farnam Street Investments with my then-boss at the energy company, who also happened to be a big Buffett fan. We named the company as a tip of the cap to Warren Buffett (Trades, Portfolio)'s first partnership he started out of his house on Farnam Street.


  • 20 Questions with Dave Vitale

    1. How did you get started investing? What is your background?

    I grew up in a small town outside of Madison, Wisconsin. My parents came over from Italy for opportunity. They were very entrepreneurial. My family had several small businesses. As a kid I had lots of energy and passion. I didn’t really care for school much at the time. I knew upon graduating high school I didn’t want to go to college right away, and I didn’t really want to do the family business thing, either. I started frequenting Barnes & Noble (NYSE:BKS) at the time and spent hours there reading books for free. I’m sure they weren’t very happy with me. I was reading business books knowing that I wanted to do something in business. It took many books before finally one really set me on fire and I accidentally stumbled upon it. I actually bought it and took it with me on my trip to Italy. It was called, "The Warren Buffett Way." It cost me $4.99. As soon as I picked it up it made total sense to me. It was like a light bulb moment. I was born skeptical and frugal so value investing really took hold. The rest is history.


  • Mohnish Pabrai Buys Southwest

    Mohnish Pabrai (Trades, Portfolio) of Pabrai Investment Funds gained a new holding in Southwest Airlines (NYSE:LUV) during the third quarter.

    Pabrai is managing partner at Pabrai Investment in Irvine, California. He is a value investor and holds a concentrated portfolio of typically out-of-favor stocks. His holdings range from small to mega-cap companies.


  • 21 Questions With Aidan Sweeney

    Aidan Sweeney is the founder of iValueInvesting.

    1. How and why did you get started investing? What is your background?

  • Mohnish Pabrai Buys AerCap

    Mohnish Pabrai (Trades, Portfolio) acquired a new holding in AerCap Holdings NV (NYSE:AER) during the second quarter.

    In AerCap, Pabrai purchased 624,160 shares for an average price of $38.38 per share. The transaction had an impact of 7.1% on the portfolio. The stock has increased by 3% since.


  • Intrinsic Value and the Margin of Safety: What Is it all About?

    The margin of safety principle is a fundamental part of value investing. Indeed, you could go so far as to say that without understanding this principle, it is not possible to follow a value strategy.

    That being said, just by buying a stock that is trading below book value could qualify as buying with a margin of safety. However, as most experienced value investors will tell you, it is often not enough just to find the stocks trading below book value. Following this strategy can often lead you into value traps. There is usually a reason why stocks are trading below their book value per share and if you do not understand why, you could have a very negative surprise further down the line.


  • Value Investing, Taught by 6 Superinvestors

    Recently I bumped into this great free value investing course offered by Udemy. (link here)

    I like it so much that I decided to share it with our readers.


  • 4 Things Billionaire Investors Have in Common, Part 2

    This is part 2 of a four-part series of short articles (click here to read part 1). Each article sets out to explain an important trait that billionaire investors have in common. The goal of these articles is to explain simple concepts that the best investors in the world use and you can implement today. Success leaves clues and one of the best ways to learn is to deconstruct and reverse engineer what the best in the world do. So let’s get to it.


  • Mohnish Pabrai's University of California Lecture

    If you are a value investor and Warren Buffett fan, you can't help but love Mohnish Pabrai.

    For a decade and a half Pabrai has been beating the market with a concentrated value approach.


  • Why Personal Finance Matters to Investors

    Personal finance and investing are not mutually exclusive. If you want to invest, then make sure you have your personal finances in order first. I know, I know, it's boring. But I have just the cure. This post is designed to teach you the important principles in a fun and different way, using simple parables that never seem to lose relevance.

    Talking points


  • Fiat Chrysler Recalls Vehicles Over Transmission Problems

    London-based Fiat Chrysler Automobiles (NYSE:FCAU), the seventh-largest automaker in the world, announced Friday that it would recall more than 1 million vehicles because they can roll abruptly and, as a result, cause damage and/or injuries if the transmission is being used incorrectly.

    The recall was issued after a reported 41 injuries were connected to problems with the automatic gearshifts. The gearshift indicator has been redesigned for all models.


  • Mohnish Pabrai Sells Out Horsehead Holdings

    Guru Mohnish Pabrai (Trades, Portfolio) is an engineer, investor, author, philanthropist and he also loves to play bridge competitively. Pabrai attributes much of his investment philosophies to Roger Lowenstein’s book called "Buffett: The Making of an American Capitalist." The most impactful quote that Pabrai learned from reading Lowenstein’s book was “I am a better business man because I am an investor, and I’m a better investor because I am a businessman.”

    It was at this time in 1994 when Pabrai learned that there is an interplay between investing and business. Pabrai has been a very big advocate of the company Horsehead Holding Corp. (ZINCQ). In the third quarter of 2015, he owned 8,300,131 shares of the company. Since then Pabrai has been slashing his position is Horsehead and in the first quarter of 2016, Pabrai finally decided to sell out his remaining shares of the company.


  • What Is Downside?

    One of the most quoted sayings in investing goes like this: “If you take care of the downside, the upside will take care of itself.”

    This sounds so simple. People say they control risks by considering the downside in every investment and they make decisions based on the so-called risk-reward ratio – risk being the downside and reward being the upside. Very few investors appropriately implement the idea of taking care of the downside. Even many of the gurus listed on this forum failed to heed this piece of timeless wisdom.


  • Mohnish Pabrai on Position Sizing

    In his book, "The Dhandho Investor," Mohnish Pabrai (Trades, Portfolio) suggests the size of our bets in an approach to reap most of the benefits of concentrated allocations. In practice, however, even Pabrai has switched back and forth on his suggestion, finally arriving at a revised methodology that enables him to maximize profits and minimize risk, the classic "heads I win tails I don't lose much" approach he embraces. Here is what he said during a UC-Davis lecture in 2012:


  • Mohnish Pabrai Cuts Losses With Struggling Steelmaker Posco

    Value investor and author Mohnish Pabrai (Trades, Portfolio) purchased a new holding in Berkshire Hathaway (NYSE:BRK.B) during the fourth quarter — his only new investment during the period. Pabrai also threw in the towel with another notable holding, South Korean steel maker Posco (NYSE:PKX).

    Pabrai closed a previous position in Berkshire back in the first quarter, selling the holding for an average of $147.23 per share. Over the past year, Warren Buffett (Trades, Portfolio)’s holding company has declined 15% in price, and Pabrai took the opportunity to purchase 87,006 shares during the fourth quarter for just $134.21 per share.  

  • Mohnish Pabrai on the 'Nifty Fifty'

    Mohnish Pabrai (Trades, Portfolio) gave a presentation in December at MDI Gurgaon in India. During the presentation Pabrai discussed the new Nifty Fifty, 50 stocks that traded on the NYSE during the 1950s and 60s that were widely regarded as buy-and-hold growth stocks. Pabrai also discussed value investing and Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio). His college presentations are always insightful and informative.


  • Pabrai Trims Stake in Horsehead Holding

    After adding to his stake in Horsehead Holding Corp. (ZINC) five times between July 22 and Aug. 21, guru Mohnish Pabrai (Trades, Portfolio) reduced his stake by nearly 16% on Jan. 20.

    Pabrai sold 1,012,517 shares of the Pittsburgh-based zinc producer for an average price of 45 cents per share. The transaction left Pabrai with a stake of 5,320,779 shares and dropped him from the position of leading shareholder among the gurus to second behind HOTCHKIS & WILEY.


  • Mohnish Pabrai Explains Bubbles in Boston College Lecture

    Value investor Mohnish Pabrai (Trades, Portfolio) recently gave a presentation about stock market bubbles, including the motor, tronics and dot-com bubbles, for Boston College's Carroll School of Management.


  • The Top 10 Hits of 2015 That Are Packed With Value

    One year sounds like a long time.

    But if you break it down in 365 days or 52 weeks or 12 months, a year is an instant.


  • Checklists Can Help You Avoid Unnecessary Investment Mistakes

    One thing I have been working on to improve on my investment process is a checklist. Checklists are used in a number of fields from operating rooms to flight decks to great effect. Surgeon Atuwal Gawande has advocated their use in the bestseller the "Checklist Manifesto." That book is certainly one of the reasons I decided to put one together myself. Other inspirations were value investors Guy Spier and Mohnish Pabrai (Trades, Portfolio), who advocate the use of checklists in the investing world and the investment checklist developed by Pope Brar at Brar Investment Fund. I borrowed lots of items verbatim from the more extensive checklist he set up and which you can find here:



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