Mohnish Pabrai Mimics Buffett and Munger

“Before starting my own investment funds, the only models I was aware of were those of Warren Buffett and Charlie Munger. Their models made a lot of sense to me, so I cloned them,” says investor Mohnish Pabrai in an interview with Forbes. The article says Pabrai has beaten the stock market by triple-digits, but the businessman and philanthropist argues that his success is “nothing unexpected or surprising.” In his twenties, while an undergraduate engineering… Read More

Billionaire Advice Might Not Fit the Bill for All

Another round of advice on sticking to an investment plan might sound like our needle is stuck, but this time we’re coming at it from a slightly different angle. Bloomberg View columnist Barry Ritholtz shares perspective on comments made earlier this month by Convergex chief strategist Nick Colas. The gist of Colas’ view was that investors should heed the advice of billionaire investors such as George Soros, Jeff Gundlach and Bill Gross, all of whom… Read More

Hedge Fund Cloning Strategy Shows Massive Outperformance

In his MarketWatch column, Mark Hulbert discusses an investment strategy based on imitating hedge funds, which was developed by Mebane Farber of Cambria Investment Management. Faber argues that “we can duplicate [the best hedge fund’s] investment performance without having to pay a penny in management fees” by reviewing their holdings (which are publically available with a maximum of a 45-day lag) and imitating carefully. Specifically, “the key is to construct a portfolio of the stocks… Read More