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Monday, February 7, 2011

Value Investor of the Week- Mohnish Pabrai

Mohnish Pabrai is the managing director of Pabrai Investment Funds. He adheres strictly to the principals of Warren Buffett, even structuring his funds like the Early Buffett partnerships. He began his fund with $ 1 million and now has assets of under mangagement of roughly $400 million. He delivered cumulative returns of over 90% vs a -27% return from the S&P index from Oct. 2000 to 2008.

His strategy is simple he looks for undervalued companies typically in smaller companies with market capitalizations of $500 million. He runs a concentrated fund consisting of 10 to 20 holdings. He is mentioned as a new school Warren Buffett. All this from a guy who was a successful entrepreneur, having run a successful computer and it consulting firm before selling it to become a excellent value investor.

For those more interested in learning about his methods you should check out the Dhando Investor: The low-risk value method to high returns.

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