Mohnish Pabrai

Mohnish Pabrai

Last Update: 08-11-2017

Number of Stocks: 6
Number of New Stocks: 0

Total Value: $405 Mil
Q/Q Turnover: 3%

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

Mohnish Pabrai Watch

  • Mohnish Pabrai on Fiat Chrysler

    According to Mohnish Pabrai (Trades, Portfolio)’s third-quarter letter to investors of the Pabrai funds, the renowned value investor has less than 12% of his equity portfolio allocated to U.S. equities with the rest invested in overseas assets. India is an area of particular interest, but Europe’s Fiat Chrysler (NYSE:FCAU)(MIL:FCA) is his most-loved stock.


    Fiat has been one of Pabrai’s top positions for years, and despite the 70% runup in the value of the stock year to date, he still believes the automaker has more to give.

      


  • These Unfortunate Facts Ensure Deep Value Will Outperform

    The evidence that value outperforms long term is compelling, but the question is why. And why do most professionals continue to ignore value strategies?


    The more I research value investing, the simpler its concepts appear. It is the simplicity behind a value-based investment strategy that helps explain its success.

      


  • Why Buffett, Lynch and Pabrai Want Easy Ideas

    Some of the best investors the world has ever seen spend very little time analyzing new equity positions.


    At first glance, this does not seem to make sense. Surely, you should research every investment opportunity in depth before coming up with a valuation and then invest? Wall Street research reports can extend across many tens of pages with various valuation models, sector analyses and company-specific analyses, all designed to reach one conclusion. But is this worth it?

      


  • Don’t Fall Into This Investing Trap

    You might not be aware of anchoring bias, but it has almost certainly affected at least one of your investment decisions.


    Anchoring is the human tendency to rely on the first piece of information offered. For investors, the first piece of information can come in many forms, but generally, a stock chart will be the first thing viewed when researching a new position. This opens you up to anchoring for the equity price. How many times have you heard that since a stock is down a certain percentage, it looks cheap? This assumption is based not on a company’s valuation, but the movement of the stock price.

      


  • Berkshire and Blue Chip Stamps

    Fellow GuruFocus contributor “Snowballbuilder” recently pointed me to a June 2017 speech by Mohnish Pabrai(Trades, Portfolio) at UC Irvine. I greatly enjoyed the talk and conclulded it would probably be worthwhile to share my notes.


    The presentation reviewed some of the key investments Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) made in the 1960s and 1970s, starting with Blue Chip Stamps, as well as the substantial returns realized out of these investments over the ensuing five decades.

      


  • Mohnish Pabrai Crushing It With 2 Best-Performing Car Companies, Ferrari and Fiat

    While Tesla pessimism strikes its stock price after an 833% five-year run, Mohnish Pabrai (Trades, Portfolio), head of Pabrai Investment Funds and Dalal Street hedge fund, staked roughly 44% of his U.S. long stock portfolio on two of the best-performing car companies trading in the U.S. It also placed him at the top of the Scoreboard of Gurus for roughly the first half of the year.


    Year to date, the two stocks, Fiat Chrysler Automobiles (NYSE:FCAU) and Ferrari (NYSE:RACE), provided the best returns of any car company. Fiat Chrysler advanced 31.5% to and Ferrari surged 62.7%. The increases helped boost Pabrai’s Dalal Street performance for his long stocks held from September 2016 to date to an estimated 51.08%. Pabrai was followed by mutual fund investor Ken Heebner (Trades, Portfolio) and hedge fund manager Chase Coleman (Trades, Portfolio) for the same period.

      


  • Mohnish Pabrai on Buffett’s Success, Mistakes and Company Research

    Mohnish Pabrai (Trades, Portfolio) is one of my favorite value investors.


    His knowledge of the subject and understanding of what it takes to be a successful investor are unrivaled, and over the years he has given some extremely interesting interviews detailing his ideas on the topic of investing.

      


  • 7-Eleven: A Backdoor Strategy Worth Considering

    With its 1,100-store Sunoco (NYSE:SUN) acquisition announced in April, 7-Eleven parent company Seven & i Holdings Co. Ltd. (TSE:3382) is gaining more attention from Western investors. The story is simple: 7-Eleven dominates the convenience store industry in Japan and now looks outside of the country for further growth.


    When looking at Seven & i’s convenience business specifically, the growth story makes a lot of sense: Highest average daily store revenue in Japan, largest store network, lowest-cost operator and the list of competitive advantages continues. What many investors overlook, however, is Seven & i’s lagging department store and general merchandising store (GMS) businesses. These two segments combined accounted for 48% of 2017 revenues but less than 7% of operating income. In comparison, the convenience business accounted for 43% of revenues and 86% of operating income. As a result, Seven & i delivers a meager 4% return on investment (ROI), making the convenience growth story considerably less compelling.

      


  • The Best Ideas Are Obvious From the Start

    Trying to find investment ideas is a difficult process. Finding an idea might be easy, but justifying the investment and putting it through a rigorous process of due diligence where you subject yourself to questions that look to remove any elements of confirmation bias is difficult, especially considering the psychological elements of this process.


    Over the course of his career, renowned value investor Mohnish Pabrai (Trades, Portfolio) has tried to streamline his investment process as much as possible to remove any biases and to ensure he does not repeat the same mistakes he has made in the past.

      


  • An Easy Way to Replicate Pabrai?

    As I have written several times before, Mohnish Pabrai (Trades, Portfolio) is one of my favorite value investors. There are many reasons why I like Pabrai’s approach. His returns speak for themselves, but Pabrai also approaches the market with a steady hand, long-term outlook and calm demeanor, something many other investors struggle to achieve.


    Pabrai’s gentle approach has helped him become one of the world’s most successful value investors. By concentrating on his returns, blocking out the rest of the market and taking a long-term focus, Pabrai has turned $100,000 invested in his leading fund at inception into $937,000 for year-end 2016 net of fees.

      


  • Mohnish Pabrai's Wisdom

    This is the second part of a small series I’m doing on the wisdom of Mohnish Pabrai (Trades, Portfolio). In the last article, I covered Pabrai’s view on checklists and how they can help any investor streamline their process, reduce losses and improve overall investment performance. In this article, I’m going to take a look at Pabrai’s view on portfolio concentration and other portfolio management issues.


    The quotes below are taken from a discussion between Pabrai, Guy Spier and Michael Shearn at the ValueConferences Best Ideas January 2014 conference.

      


  • More Wisdom From Mohnish Pabrai

    As I’ve mentioned before, Mohnish Pabrai is my favorite value investor. Reading his writing, listening to his speeches and reading transcripts of his debates has given me a valuable insight into the world of investing from someone who is one of the most thoughtful investors ever to have walked the face of the planet.


    This article is devoted to part of a discussion between Pabrai, Guy Spier and Michael Shearn at the ValueConferences Best Ideas January 2014 conference.

      


  • Why Money Managers Don’t Own Net-Nets – And Why You Should

    Someone emailed me recently about net-nets. He found my old post:


    How Did Mohnish Pabrai Not Make Money in Japanese Net-Nets?”

      


  • 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.

      


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