Three weeks ago I didn't have the book " DHANDO INVESTOR" by Mohinish Pabrai, now I do. Its a good book, deals with simple concpets and common sense arbitrage and buying businesses with durable moats.
Heads I win, tails I don't lose much, is the center theme around all chapters in the book. Fine, that is great ,sounds more like a gamblers motto than an investing insight and wisdom.
Great concepts no doubt, it should work in the long run if you have nothing better to do or invest or know about around you. Than I went to www.nasdaq.com and drilled down Mohnish Pabrai's holdings ( you find out about any public funds what they own at the site and portfolios etc in minutes).
He is invested with 300 million dollars in 15 stocks and a bunch of Berkshire Hathway class A and B shares where he is parking idle cash. BRK hasn't done a thing since 2007 and the chart is sideways. Mohnish could have bought T-Bills at5% and done better if he wasn't in such an awe, about Warren Buffet through out this year.
Take a look at the charts of RAIL, PNCL and some of his holdings some other obscure stocks that he owns. They have low P/Es and high ROE, I agree. But the stocks are in the dumpsters! Technical charts suck. There is no promise if that business will make it big. Why would you invest 2-3 years of your dollars in some doubtful business just because you bought it 50- 75 cents on the dollar when you can reap twice as much on some great running bullish stocks that pay cash divvys ?
No wonder these guys call themselves geniuses when the eek out a measely 20% returns. Heck , you can buy SPY and IWM and some bullish stocks like DO, HAL, SLB, GOOG, AAPL, AMZN, NVDA and some mutual funds and perhaps come out way way ahead. What is this buying up some junked up companies when there is so much meat on the others that you can trade your way in and out, write covered calls, and enhance your returns.
The way I look at it, I make 5-10% returns through income generation strategies consistently on a small 150 K account, my returns are astronomical compared to Pabrai Funds or BRKA this year so far ?
Would you call me a genius perhaps?
Heads I win, tails I don't lose much, is the center theme around all chapters in the book. Fine, that is great ,sounds more like a gamblers motto than an investing insight and wisdom.
Great concepts no doubt, it should work in the long run if you have nothing better to do or invest or know about around you. Than I went to www.nasdaq.com and drilled down Mohnish Pabrai's holdings ( you find out about any public funds what they own at the site and portfolios etc in minutes).
He is invested with 300 million dollars in 15 stocks and a bunch of Berkshire Hathway class A and B shares where he is parking idle cash. BRK hasn't done a thing since 2007 and the chart is sideways. Mohnish could have bought T-Bills at5% and done better if he wasn't in such an awe, about Warren Buffet through out this year.
Take a look at the charts of RAIL, PNCL and some of his holdings some other obscure stocks that he owns. They have low P/Es and high ROE, I agree. But the stocks are in the dumpsters! Technical charts suck. There is no promise if that business will make it big. Why would you invest 2-3 years of your dollars in some doubtful business just because you bought it 50- 75 cents on the dollar when you can reap twice as much on some great running bullish stocks that pay cash divvys ?
No wonder these guys call themselves geniuses when the eek out a measely 20% returns. Heck , you can buy SPY and IWM and some bullish stocks like DO, HAL, SLB, GOOG, AAPL, AMZN, NVDA and some mutual funds and perhaps come out way way ahead. What is this buying up some junked up companies when there is so much meat on the others that you can trade your way in and out, write covered calls, and enhance your returns.
The way I look at it, I make 5-10% returns through income generation strategies consistently on a small 150 K account, my returns are astronomical compared to Pabrai Funds or BRKA this year so far ?
Would you call me a genius perhaps?
