Money and Finance
- Dhandho Holdings Makes Acquisition
Mohnish Pabrai's foray into the insurance business... Link to: Dhandho Holdings To Acquire Louisiana-Based Stonetrust Commercial Mutual Insurance Holding Company And Related Companies "Stonetrust is a wonderful business with an exceptional management...
- A Checklist For Investors - By Jason Zweig
Decades' worth of psychological studies show that people are extremely good at figuring out which information they need for a decision—but do a poor job of using that evidence methodically over time. You are likely to draw divergent conclusions...
- Whitman, Diz On Net-nets
From the book Modern Security Analysis: Understanding Wall Street Fundamentals:Our definition of net nets is taken from Graham and Dodd’s Security Analysis, but with a few twists. Graham and Dodd relied on a GAAP classified balance sheet to definite...
- Notes From The Pabrai Funds Chicago Annual Meeting - By Matt Miller
My colleague at Chanticleer, Matt Miller, was kind enough to take some notes at the Pabrai Funds Annual Meeting this past Saturday and allow me to share them below. As always, we had a great time and Mohnish was a perfect host to all that came.Pabrai...
- Value Investing Congress - Speaker Picks
All of the presented ideas are located on the Value Investing Congress Blog. Here's a couple of them:-Sellers and Fasciani presented the case for Vulcan Materials (VMC, $66):• Demand for aggregate materials (asphalt related) will grow as US infrastructure...
Money and Finance
Notes from the Pabrai Funds Chicago Annual Meeting
Update on the Japanese Net-Net:
The Pabrai funds invested in a basket of Japanese net-nets starting October 2010. Pabrai has exited all the positions with a realized gain of 2.2% including dividends, or 1.4% annualized. To me, this is surprising as the Japanese market has advanced significantly since October 2010. In search of explanation, Mornish referred to a few quotes from Ben Graham from the 1940 edition of "Security Analysis." Here is one:
"It may be pointed out, however, that investment in such bargain issues needs to be carried on with some regard to general market conditions at the time. Strangely enough, this is a type of operation that fares best, relatively speaking, when price levels are neither extremely high nor extremely low."
Pabrai expanded on this by stating that when the market bottoms it's much better to buy quality companies that have fallen precipitously with the market than focus on net-nets. When the market flies, net-nets are also ignored because investors shift their focus to both quality companies and story stocks.
Examples include Hibiya Engineering (TSE:1982) and Ryoyo Electro (TSE:8068). Both were trading below NCAV at the time of his investment, generating profits as well as positive and consistent cash flows. Managements of both companies were also repurchasing shares. Hibiya ended up just a little bit profitable, and Ryoyo turned out be a 15% loss.
- Dhandho Holdings Makes Acquisition
Mohnish Pabrai's foray into the insurance business... Link to: Dhandho Holdings To Acquire Louisiana-Based Stonetrust Commercial Mutual Insurance Holding Company And Related Companies "Stonetrust is a wonderful business with an exceptional management...
- A Checklist For Investors - By Jason Zweig
Decades' worth of psychological studies show that people are extremely good at figuring out which information they need for a decision—but do a poor job of using that evidence methodically over time. You are likely to draw divergent conclusions...
- Whitman, Diz On Net-nets
From the book Modern Security Analysis: Understanding Wall Street Fundamentals:Our definition of net nets is taken from Graham and Dodd’s Security Analysis, but with a few twists. Graham and Dodd relied on a GAAP classified balance sheet to definite...
- Notes From The Pabrai Funds Chicago Annual Meeting - By Matt Miller
My colleague at Chanticleer, Matt Miller, was kind enough to take some notes at the Pabrai Funds Annual Meeting this past Saturday and allow me to share them below. As always, we had a great time and Mohnish was a perfect host to all that came.Pabrai...
- Value Investing Congress - Speaker Picks
All of the presented ideas are located on the Value Investing Congress Blog. Here's a couple of them:-Sellers and Fasciani presented the case for Vulcan Materials (VMC, $66):• Demand for aggregate materials (asphalt related) will grow as US infrastructure...