Value Investing Advice from Mohnish Pabrai

Sumzero, an online research platform for professional investors, recently conducted an interview with noted value investor and author Mohnish Pabrai, founder of Pabrai Investment Funds (a group of hedge funds modeled on Buffett’s original partnerships), which manages over $800 million. Here are highlights of the interview: Current state of value investing: According to Pabrai, the principles and approach of value investing will not change significantly. That said, he pointed out that markets will go through… Read More

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

Investors And The “Trifecta Of Failure”

What separates great investors from the rest? The Motley Fool’s Morgan Housel says it has to do not with financial acumen, but instead with psychological prowess. While most investors are “mental catastrophes” the great ones “are masters of psychology,” Housel writes (h/t to The Big Picture). “They can’t control the market, but they have complete control over the gray matter between their ears.” Housel says most investors suffer from a variety of cognitive biases, including… Read More

Pabrai: U.S. Economy Will Surprise

Hedge fund manager Mohnish Pabrai thinks the economy is going to fare much better than many people think heading into 2013. “I think that people are going to be surprised at how robustly the U.S. economy comes back,” he tells Morgan Housel on The Motley Fool’s website. “I think housing is a big driver and housing is coming back in a big way.” Pabrai also says he thinks “we’ll be surprised at how robust the… Read More

Lessons from Warren and Charlie

Value investor Mohnish Pabrai has gotten the chance to do what few other investors have: Eat lunch with investing legends Warren Buffett and Charlie Munger. What did he learn from those lunches?┬áPabrai says Munger told him that an investor could produce vastly better results than most others by doing three things. “One is carefully look at what the other great investors have done,” he tells The Motley Fool’s Morgan Housel. “And the second thing he… Read More

Pabrai Talks Moats, and “Low Risk, High Uncertainty”

Top value manager Mohnish Pabrai discusses his investment strategy in this recent Forbes.com interview with Steve Forbes. Pabrai talks about the importance of patience for investors; the concept of “low risk, high uncertainty”; why he stays away from the tech sector; and why he thinks index funds are a good choice for individual investors.

Six Lessons from the Bear Market

In their latest Kiplinger’s column, Whitney Tilson and John Heins — who were well ahead of the curve on the housing and financial meltdown last year — use their own experience and those of other noted investors to offer six lessons to take from the recent bear market. Their lessons: Beware of over-concentration: This one comes from top manager Mohnish Pabrai, who believed his previous allocation of 10% on 10 different investments was too concentrated… Read More

Pabrai on Buffett, and the Current Market

Fund manager and author Mohnish Pabrai — a Warren Buffett disciple who a couple years ago paid $650,000 in a charity auction for the right to have lunch with “The Oracle of Omaha” — tells Fox Business News about what he’s learned from Buffett, and how he’s profiting from the rebound. The segment also includes some recent comments Buffett made on his own approach, and his thoughts on market timing. [youtube=http://www.youtube.com/watch?v=9JZ1DcW9_rY&hl=en&fs=1&rel=0]

Tilson on Cognitive Dissonance, and a Shift in Strategy

In a column for the Financial Times, money manager and columnist Whitney Tilson — one of those who predicted the housing and financial crises — discusses the “tricky” process of trying to alter one’s approach based on the lessons of the past year, and examines some changes that he and another star manager have made. Tilson say that many investors are likely enduring some serious cognitive dissonance — that is, they are having trouble reconciling… Read More

What Does It Mean to be a Value Investor?

In a piece written for Forbes.com’s “Gurus’ Guide to 2009“, John Heins and Whitney Tilson do a great job in examining just what makes an investor a value investor. While value investors come in all shapes and sizes — large-cap, small-cap, activist, non-activist, U.S.-focused, foreign-focused — Heins and Tilson list 12 similarities they share. A sampling: They focus on intrinsic company value and buy only when there is a substantial margin of safety, rather than… Read More