Friday, August 21, 2009

Value Investor Mohnish Pabrai - The Dhandho Investor

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. Pabrai wrote a book about 2 years 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. Dhana-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 5% to 10% in each stock. Currently Pabrai holds 17 stocks in his portfolio with about 235 million under management. Ternium
$TX, Harvest Natural $HNR, Teck Cominico CL B shares, Berkshire Hathaway $BRKB and Fairfax Financial Holdings $FFH are his 5 top holdings. The current 13F filings show that Pabrai bought a large position in Brookfield Properties $BPO while closing out his position in Sears Holdings $SHLD .
For those of you that have not read the Dhandho Investor, you should, it is simple to understand and makes a lot of sense.

Posted via email from stockmanmarc's posterous

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