In 2008, investor and author of Indo-US Mohnish Pabrai and a colleague paid $ 650 100 to a charity to win a dinner with Warren Buffett. Since then, the manager of a portfolio of more than 500 million U.S., went into business with $ 70,000 borrowed on his credit cards, fascinates the world of finance for his humility … and its propensity to beat the S & P 500. Our correspondent met him in California.
IRVINE, Calif. – On the walls of his office in Irvine, south of Los Angeles, Mohnish Pabrai hung annual reports of companies, framed and placed into three distinct sections.
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Near the entrance are the “winners” investments that have reported five or ten times the bet, or more. Near workstations are the “correct” investments, which achieved good results, but did less well than expected.
In the kitchen near the fridge, it shows the “wall of shame”.
Deflate his ego
“When I’m going to get a coffee, I am face to face with my worst mistakes, said Mohnish Pabrai, displaying a wide smile. It is difficult to develop an ego when you have each day, nose stuck in your most stupid decisions. ”
It is not a coincidence that Mohnish Pabrai likes deflate his ego. Her mentors, Warren Buffett and Charlie Munger, do the same for decades.
But Mohnish Pabrai pushing exercise even further: he said he had “no original idea,” and notes that the structure of the company, Pabrai Investment Funds, is a perfect one layer of Berkshire Hathaway.
To date, Mr. Pabrai manages more than 500 million, and achieved notoriety in the circles of American investors for his outspoken and full year results that beat indices, year after year.
“I have rarely new ideas, he told La Presse. I am forever a cloner, and I’ve never understood why more people do not like me. ”
Mohnish Pabrai three quotes “I have nothing new to share. All I’ll do is give you the old ideas that come from others. ”
“We like to keep the cash, that way we do not miss the opportunity to enter a long-term opportunity.”
“Unlike neurosurgery in the world of investments, you can make mistakes 40% of the time and you draw brilliantly.”
The current major investment Mohnish Pabrai
> Bank of America Corporation
> Chesapeake Energy Corp.
> Citigroup Inc.
> Horsehead Holding Corporation
> General Motors Co.
> Goldman Sachs Group Inc.
Full article in English below via Corner of Berkshire and Fairfax
La Presse – June 25, 2013 Mohnish Pabrai by ValueWalk.com