Mohnish Pabrai

Mohnish Pabrai

Last Update: 05-12-2017

Number of Stocks: 7
Number of New Stocks: 0

Total Value: $389 Mil
Q/Q Turnover: 4%

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

Mohnish Pabrai Watch

  • Mohnish Pabrai: Simple and Cheap Is Best

    Mohnish Pabrai (Trades, Portfolio) is my favorite value investor. He is also an investor I believe people can learn a significant amount from.


    I like Pabrai because his style is simple. Much like Warren Buffett (Trades, Portfolio), he prefers a strategy where the value is clearly apparent, and there is no need for complicated investment analysis to arrive at intrinsic value. Pabrai places an enormous degree of value on a company’s management, the record management has and whether or not he would be comfortable investing alongside them.

      


  • Mohnish Pabrai Sells Seritage, Buys AerCap

    Pabrai Funds’ Mohnish Pabrai (Trades, Portfolio) announced Friday that he cut almost his entire stake in Seritage Growth Properties (NYSE:SRG), a company associated with the struggling Sears Holdings (NASDAQ:SHLD), and increased his position in AerCap Holdings NV (NYSE:AER) during the first quarter.

    Pabrai slashed 94.9% of his Seritage Growth Properties from his concentrated fund of seven stocks. Seritage was previously his second smallest holding, occupying 6.51% of the portfolio. Following his disposal of 502,111 shares, Pabrai retained 27,002 shares of the company, whose stock traded around $43 on average. Pabrai broke even on the investment, starting it in the first quarter last year for an average price of $42.  


  • Deep Value Opportunity for Patient Investors


    Warning: Illiquid, closely held, de-registration (suspending SEC reporting) susceptible toward an unfriendly shareholder environment. The negatives are significant and only suitable for patient longer-term investors.

      


  • Some Observations on the Checklist Approach


    “We need a different strategy for overcoming failure, one that builds on experience and takes advantage of the knowledge people have but somehow makes up for our inevitable human inadequacies. And there is such a strategy – though it will seem almost ridiculous in its simplicity, maybe even crazy to those of us who have spent years carefully developing ever more advanced skills and technologies.

      


  • How to Learn From Your Investing Mistakes

    Investing is not a precise science, and sooner or later you are bound to make a mistake that will cost you money (if you haven’t already).


    It’s how you act after this mistake that defines your investment career. The best investors will cut their losses and move on to the next opportunity, fully acknowledging the severity of the error, what went wrong and what can be improved next time around.

      


  • 5 Uber Cannibals to Top the Market

    Guru Mohnish Pabrai (Trades, Portfolio) has released a new Uber Cannibal portfolio.


    The Uber Cannibals is a group of five companies that have succeeded in purchasing large quantities of their own shares in the course of the last 12 months. They appear to be consuming their share count. It has been discovered through academic research that these so-called cannibals tend to outperform.

      


  • Myths About Dividend-Paying Blue-Chip Stocks

    Finding blue-chip dividend-paying stocks is one of the best ways to grow your wealth over time. These companies have paid a dividend consistently over the years over a great double compounding effect that is hard to beat. We will discuss some of the myths of dividend-paying blue-chip stocks and why they are in some cases avoided by the investor for flashier, more exciting opportunities.




  • Lessons From the Best: How to Pick the Bottom

    Value investing is all about buying cheap stocks. Unfortunately, finding cheap stocks is easier said than done. Distinguishing between price and value is the first step in this process. Just because a particular company’s shares look cheap compared to previous price action does not mean they offer value.


    If the shares were trading at $100 two years ago and are now trading at $10, and over the same period profits have fallen by 90%, and so has shareholder equity, then it’s fair to say that shares are fairly valued at the new lower price of $10.

      


  • 20 Questions With Tom Vilord of Vilord Wealth Advisors

    1. What is the best investment advice you have ever been given?


    Do not just buy a great company because you like the products or understand the business. Only buy if the stock is trading at a margin of safety. Buying at a MOS will cover my butt if I happen to miscalculate the intrinsic value.

      


  • 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.

      


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