Thursday, November 13, 2008

the Dhandho Investor: Mohnish Pabrai


For those of you that are not familiar with Mohnish Pabrai, he is a devout disciple on the teachings by Warren Buffett and Ben Graham. Mohnish runs a fund identical to Warren Buffett's original Buffett Partnership which was the predecessor of Berkshire Hathaway(BRKA,BRKB). Pabrai wrote a book about a year ago titled the Dhandho Investor. The word Dhandho which is pronounced dhun-doe is a Gujarati(a state in India) word. Dhan comes from the Sanskrit root word Dhana meaning wealth. Dhan-dho, literally translated, means "endeavors to create wealth".
Pabrai is a focus investor usually holding about 12-18 stocks in his portfolio. Pabrai likes to put no more than about 10% in each stock. Currently Pabrai holds about 16 stocks in his portfolio with about 320 million under management. Fairfax Financial(FFH), Harvest Natural(HNR), and Sears Holdings(SHLD) represent his 3 top holdings. The current 13F filings show that Pabrai increased his holdings by 52% in Wellcare(WCG) while selling most of his position in Jackson Hewitt(JTX).
For those of you that have not read the Dhandho Investor, you should, it is simple to understand and makes a lot of sense.

2 comments:

  1. Excellent Book. One of the easiest reads in finance. Pabrai is truly a Buffett disciple in the tradition of value investing. I think the only difference between the two is Pabrai will buy companies with less of an economic moat than Buffett.

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  2. A Great agreed.
    Pabrai seems to practice or invest like early Buffett and Ben Graham, going for 50 cent dollars, however his portfolio is much smaller than Buffetts, Berkshire is much to large to invest like this...

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