Jobaaj Stories
In the series of JobaajStories’ Top Investors, today we bring to you the humanitarian investor who made headlines by bidding US $650,100 (then Rs 2.6Cr, today's Rs 5.3 Cr) for having lunch with Warren Buffet in 2007. Yes, it's The Mohnish Pabrai.
Well renowned for his philanthropic acts and broadly called The Intellectual Heir of Warren Buffet, Mohnish Pabrai is an Indian-American value investor and businessman. The Bombay-born backer is today the managing partner of the Pabrai Investment Funds(family of hedge funds) founded by him in 1999 and Dhundho Holdings. He also started The Dakshana, Infinite Good Foundation, with his wife in 2005, which is excelling in the field of providing education to young children in India.
Pabrai’s Modus Operandi for Investing
Since its inception in 1999 with around $1 million in assets under management Pabrai Investment Funds has given over 517% return till now. Talking about his strategy when looking to invest in a company, Pabrai mentions ”I think that buying stocks should really be an exception, rather than the norm” focuses on how one should first determine the true value of a business before investing in it rather than on its performance in the stock market.
The Power of Compounding is another aspect he highly regards as a powerful investment notion. He has stockpiled his investing style in his book The Dhandho Investor: The Low-Risk Value Method to High Returns.
Mohnish’s Concentrated Portfolio and Holdings
The latest Corporate shareholdings filed with the exchanges show that Mohnish Pabrai publicly holds 3 stocks with a net worth of over Rs.1,287.6 Cr.
Following are the shares held by him for Qtr ending Dec 2022:
|
Stock |
Holding Value (Rs.) |
Qty Held |
|
Rain Industries Ltd. |
424.7 Cr |
29,680,000 |
|
Edelweiss Financial Services Ltd. |
415.2 Cr |
60,606,000 |
|
Sunteck Realty Ltd. |
347.7 Cr |
9,781,736 |
The Falling in with Buffet
Talking about his style of investing, Pabrai admits his strategies are highly inspired by that of Warren Buffet and others. In his book Mosaic: Perspectives on Investing, he brewed the Warren Buffet method of investing down to a few points. The self Confessed Buffet Buff when asked about his bid for lunch with Buffet says” I have gained so much from Mr. Buffet that I consider this a small Guru Dakshina”.
Dakshana Foundation
The Name Mohnish is synonymous with Lord Krishna, aligning his godly name with his work, Mohnish’s Dakshana Foundation is focused on alleviating poverty by providing world-class educational opportunities to economically and socially disadvantaged students worldwide. He uses his value investor’s need for efficiency and ROI to run Dakshana Foundation. Since Dakshana started operations in 2007, the IITs in India have accepted over 1,539 Dakshana Scholars with a success rate of 59.76%.
The Yardstick of Success
Mohnish Pabrai is a firm believer in balancing life with work, family, and personal time. He loves reading and playing duplicate bridge. He is avid about having good food and we could make sure by through scrolling his Twitter profile with lots of food pictures from different places.
These were some interesting things about the better-known Buffet Disciple articulated in today's segment of Top Investors.
Will bring to you other such engrossing personalities on JobaajStories.
