How Mohnish Pabrai Crushed The Market Since 2000

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How Mohnish Pabrai Crushed The Market Since 2000
By Fabarsi (Own work) [CC BY-SA 3.0], via Wikimedia Commons

How Mohnish Pabrai Crushed The Market By 1100% Since 2000 nice article fromForbes (found via CornerOfBerkshire) – see a small excerpt below

Mohnish Pabrai’s long-only equity fund has returned a cumulative 517% net to investors vs. 43% for the S&P 500 Index since inception in 2000. That’s outperformance of 474 percentage points or 1103 percent.

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Pabrai is a classic value investor in the tradition of Warren Buffett, Charlie Munger, Seth Klarman and Joel Greenblat. I recently had an opportunity to hear him talk and thought I’d pass along some of my bright yellow highlighting.

This mining and metals fund is having a strong year so far

Cubic Corporation Chris Hohn favorite hedge fundsThe Delbrook Resources Opportunities Master Fund was up 9.2% for May, bringing its year-to-date return to 33%. Q1 2021 hedge fund letters, conferences and more Dellbrook is an equity long/ short fund that focuses exclusively on the metals and mining sector. It invests mainly in public companies focused on precious, base, energy and industrial metals Read More


Mohnish Pabra: How to start investing

For Pabrai, this yellow brick road begins with Warren Buffett’s annual letters to shareholders (totaling 730 pages, now conveniently available for your Amazon Kindle for $2.99 cheap). From there he recommends the Buffett biographies (mentioning the ones by Lowenstein and Schroeder). I might add, though he didn’t, that you could do worse than to read Pabrai’s own book, The Dhando Investor.

Like Buffett, Mohnish Pabra looks at a stock not as a piece of paper but as the ownership of a business. He has no interest in a company that looks ten percent undervalued. He is angling to make five times his money in a few years. If he doesn’t think the opportunity is blindingly obvious, he passes. This requires him to apply his X-Ray vision to the fundamentals, and weigh the downside risk (the margin of safety) vs. the upside potential (the moat) at a given price. His mantra: Heads I win, tails I don’t lose much.

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Mohnish Pabrai: The checklist

Mohnish Pabrai was impressed by Atul Gawande’s Checklist Manifesto, which recounts how a technology seemingly as trivial as a checklist led to life-saving results in the airline cockpit and the operating room. He wondered whether it could work the same magic for investors.

See full article on How Mohnish Pabrai Crushed The Market By 1100% Since 2000 by Forbes

 

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