Parsad

The 99% number was a bit of hyperbole on my part...it was simply meant to convey that most managers think very highly of themselves...that the investor takes the risk on because of the opportunity they are getting with that manager. Very few managers think of it the other way...they are privileged to have investors trust them and invest with them. Cheers! What you cannot do is guarantee that partners will not lose money, and you also cannot guarantee to make some partners whole from the capital of other limited partners. You can certainly redistribute your own GP stake to limited partners, but this may create some tax issues as the partnership is a flow-through vehicle. We are doing this with one of our partners in the Canadian fund which we are closing, who put money in about a year before we decided to close. While we have no obligation to make him/her whole, we felt that our decision to close was contrary to the expectations he/she had when he/she invested, and felt we would be around for a long time. There are very few managers...you can probably count them on both hands...who have ever made partners whole, either through a partnership or mutual fund. 99% of managers would say that is the risk the investor takes. That is correct to a certain degree, but I think common sense and discretion should also be part of any fiduciary's responsibilities. Cheers! Well said. It's a shame that it is as high as that, 99% with a clear lack the fiduciary responsibility. For most ordinary investors, the dumbest money they spend is on investments (versus houses, cars etc. ). And likely their biggest one over their lifetimes. It is hard not to notice Buffett taking a louder and louder stance with this. Inviting Bogle to the meeting, giving that hf bet lots of publicity etc. Wish more well meaning celebrities would join Bogle/Buffett in educating the masses.

What you cannot do is guarantee that partners will not lose money, and you also cannot guarantee to make some partners whole from the capital of other limited partners. You can certainly redistribute your own GP stake to limited partners, but this may create some tax issues as the partnership is a flow-through vehicle. We are doing this with one of our partners in the Canadian fund which we are closing, who put money in about a year before we decided to close. While we have no obligation to make him/her whole, we felt that our decision to close was contrary to the expectations he/she had when he/she invested, and felt we would be around for a long time. There are very few managers...you can probably count them on both hands...who have ever made partners whole, either through a partnership or mutual fund. 99% of managers would say that is the risk the investor takes. That is correct to a certain degree, but I think common sense and discretion should also be part of any fiduciary's responsibilities. Cheers!

No problems here. Running smooth. Cheers!

He has 5 staff plus himself...you need a small boardroom...small kitchen...storage/filing space...Dhandho staff as well. Even if he only uses 2,500-3,000 sq ft, multiplied by probably somewhere around $45-60 per square foot in Irvine. I probably estimated a little on the high side with the $15-20K quote. Cheers!

Pabrai Funds has 5 part-time staff...so just say they make $30,000-$40,000 each, plus rent is probably $15,000-20,000 per month...you're already around $325K-$375K. Add in the other stuff, and it's actually probably low. Cheers!

Sorry, he said it was around $5M at the meeting, so that should say $450,000 per year. But you have office rent, salaries, benefits, insurance, GP accounting, GP tax returns, GP legal, supplies, internet, phone, cell phones, etc. Those expenses don't come out of the fund in Mohnish's fund, mine or many others...those are carried by the GP. Cheers!

Yes, Mohnish talked about alot of things. You will always learn something and he's very entertaining. - Only about 12% of the fund is now in US stocks. - Essentially he is out of GM. I think he uses the word "mistake" too liberally in relation to his investments. - He called GM a mistake, even though it was essentially slightly better than a double. - Management didn't realize the full value of the underlying assets, unlike Sergio at Fiat...called Sergio one of the best executives of the last generation/decade. - Dhandho will be liquidated and cash distributed over the next three years or less. - Deal for Stonetrust is essentially done...cost $30M and put in $30M, but made $19M in investment gains in the last year. - Doesn't want anything to do with insurance ever again...he's putting the toothpaste back in the tube! - Expects about 50% of the cash to be distributed this year and then gradually distribute the rest of the assets over the next couple of years. - Investors will be left with a stub in the GP for the fund business (not Pabrai Funds...dream on)...I would be happy to buy anyone's stub if they desire to sell! - Just killing it in the fund...up something like 20%+ in July and August - Will receive his first incentive fee in 10.25 years...somewhere around $13M! - For all you guys who talk shit about Mohnish, you have to admit that his fund structure and the way he's run it is more than partner-friendly...how many other managers would have continued running a fund, eating costs of about $800-900K a year, and not get paid for over 10 years! - Mohnish talked about a ton of other stuff, including answering a bunch of questions from the audience...I can't remember some of it because Ajay was talking to me over and over about the near-comeback by Nebraska! ;D Always a good meeting! Cheers!

I understand the desire to read things that are hard or even near impossible to access, but please be mindful of copyright laws. Do not publish, link or attach anything where the author/owner has not given permission to share. Cheers!

Well, this is probably the last board that will get created here. I think we now cover almost all of the bases between boards. The new "Personal Finance" board is exactly that...for discussing personal finance, day-to-day saving, spending, living, taxes, etc. You want to talk about finance blogs, Cash Flow Quadrangle, How to Grow Rich, Spending Habits of the Wealthy, etc...use this board. Got a deal on gift cards, want to compare big-screen tv's, or you're looking for a new car...talk on this board! Cheers!

Hi Flesh, That has nothing to do with the ads. Are you using a new mouse? You may be clicking on the scroll wheel on the mouse when moving up and down, and it will lock in the direction you clicked it. Would love to hear if anyone else had this issue, as this is the first time I've heard of it...if related to ads. Cheers!

Good post Txvestor! If I were Fairfax, I wouldn't get antsy buying back shares or deploying that money. We've learned from history that cash is king at certain times, and Fairfax is in the rare position of holding a boatload of it. Have we solved all of the problems that existed for them to hedge markets and hold deflation hedges? Not even close! Governments are just beginning to unwind their bond positions...Europe is still at very real risk of falling apart...sovereign debt loads have rarely been higher on a global basis. Notice the things that are occurring...Germany repatriating gold...China forcing changes to how state-run sovereign funds are deploying assets...increasing global tension...huge increases in ETF investments...massive algorithmic trading...still historically low global interest rates...consumer leverage still very high...margin of safety in assets prices is quite low...you can go on and on. The markets are ripe for a correction...it will only take one single event to make things unravel! My opinion...Fairfax just sit on the damn cash and wait for the fat-pitch! Cheers!

Parsad, could you elaborate? They've sold one of the absolute crown jewels. Yes, they got a high price. And yes, they surfaced some hidden value, and yes, they can de-lever a bit. Good for the short term. But long term the success of this will hinge on how much value the Mitsui partnership delivers, and that seems very vague. Yes, a crown jewel, but they received a stupid price for it...over 3 times book! What I can't believe is that they get to underwrite 25% of MSI's insurance book. The $1.6B was indecent enough, but that 25% is simply criminal! Take a look at slide 3. You notice three significant regions where Fairfax does not do as much business as MSI: Russia, Japan and South America. FC does about $400M in GPW...MSI does $25B GPW in Japan alone in non-life business. Then add the Russian market and parts of South America that Fairfax wasn't heavily involved with. Just think it was a really one-sided deal...and fortunately Fairfax is on the right side of it! Cheers!

Incidentally, alot of this success should rightfully be attributed to the Athappan's...both father and son! They've essentially built much of our Fairfax Asia business from scratch. And Sam Chan who has overseen Fairfax Asia since the beginning! Cheers!

Just a great deal for Fairfax in every way! Cheers!

Hi Folks, I don't want the investment boards and general discussion being cluttered with political posts and discussion, so I have set up a new "Politics" board where these discussions can continue. Unlike some, I believe that political discussion is important, but I also understand that many do not want to see continual infighting and members insulting one another. So, feel free to use the "Politics" board, but refrain from bad behavior. Thanks very much! Sanjeev

No, not a political post. Just that if there was one subject we could all get along with and agree upon, it would be this: http://money.cnn.com/2017/08/04/news/martin-shkreli-verdict/index.html The scales of justice got this one right! Cheers!

Yes, yes...no political discussions...that's why this is locked. But I thought of all of the interesting characters this administration had, this one was right out of central casting and would prove to be alot of fun. The ride has ended in a little more than a week! Cheers! http://www.cnn.com/2017/07/31/politics/anthony-scaramucci/index.html

What happened was that Mohnish first started Digital Disruptors...using a value investing framework to invest in technology stocks. Of course it didn't do well with tech valuations where they were, the bubble bursting, and the fact that the value framework is meant for distressed or mis-priced securities. He felt so bad with the losses his investors suffered, he asked if they would give him a second chance and he would make their money back. I believe only one investor did not partake, so Mohnish put in a little more of his own money in that partner's place. I don't know about any guarantees, but he did make it up to his partners and a lot more! Also, even in the Pabrai Funds, any partner that stayed with him, rather than pulling their money as the fund suffered on separate occasions, are back above water or better...yes, that may not mean much to some if they simply broke even after putting money in at certain peaks in the funds, but at least he didn't shut it down and walk away like most managers do...he hung in there and made it back without reaping any fees. Cheers!

Thanks KC! I'll forward your comments to Jim & Liz. The main purpose for goevisit.com is as a screening service and to treat non-emergency ailments...like your case or mine. It saves precious emergency room resources, reduces costs to the system and is far more convenient than clinics for the same treatment/service (non-emergency). Also, like your case, rural area...accessibility is enormous! And unlike other telemedicine services, goevisit.com works within the provincial/universal healthcare system, instead of charging resident users $49.95 or annual memberships. As technology improves and the services offered increase, the value proposition and convenience of goevisit.com will win out. Wait till we allow you to access your medical records remotely...it's coming and we'll be the first to offer it! My physician retired 5 years ago, after looking after my family for 50 years...I have no clue where my medical records are now! If you are travelling in Europe and get sick, you'll be able to pull up your entire medical history for the physicians looking after you over there in minutes. We're also bringing out a multitude of smart devices that can be rented or purchased and utilized through your smart phone and goevisit.com. Why use a holster monitor, when you can use wireless sensors linked to your smartphone to do the same thing. Manufacturers of these devices want to offer their products free through goevisit.com...Fitbit data in the cloud is uselss...goevisit.com will collate information for users. A ton of stuff being worked on...very exciting! Cheers!

His letters are about as public as you can make them. The SEC requires/required accredited funds to have a separate log-in to access information from advertising (newsletters, performance numbers, etc). If you are accredited and contact Pabrai Funds to access the letters, I'm pretty sure they would grant access. This rule was loosened up a couple of years ago, so I'm not sure why most funds still use the password protection. Cheers! Speaking of letters, will you ever be making the 2016 Corner Market Capital letter available? :) It will go up 6 months after partners received it...they got it in March...so around early September it will go up. Cheers!

His letters are about as public as you can make them. The SEC requires/required accredited funds to have a separate log-in to access information from advertising (newsletters, performance numbers, etc). If you are accredited and contact Pabrai Funds to access the letters, I'm pretty sure they would grant access. This rule was loosened up a couple of years ago, so I'm not sure why most funds still use the password protection. Cheers!

As I mentioned earlier, all the big value guys are sucking right now. Why single him out so hard? Also, he's not the same as the "helpers" Buffett is talking about--Buffett singles out 2/20 and fund of funds. Pabrai is 25% over 6%, just like Buffett was, and has not paid himself for years at a time. I sincerely hope you guys never screw up and have someone judge you as harshly as you are doing Pabrai right now... +1! As I mentioned in a post when Mohnish was hitting bottom and people were piling on him...this board, just like any other, is a reverse indicator of the future. Since that time, his funds are up around 100%. Yeah, he hasn't performed as well as he would like for his investors, but he's only human. Anyone who invested with him from day one is doing as well or better than the S&P500 TR to date, with PIF2 and PIF3 outperforming by about 4% annualized and PIF4 essentially breaking even. His interests are aligned with partners, he's had massive redemptions at the bottom on two occasions, and continues to fight and claw his way back up. Yeah, he's a cloner and his ideas may turn with what books he's reading, but he still uses the same fundamentals in analyzing the investments. His fund is volatile, but his results have actually been pretty good as a manager, and he only makes money when partners make money. Aren't there alot more (like 95%) managers more deserving of such scorn than Mohnish? How many young fund managers has he helped? How many investors has he helped by freely sharing his knowledge...and you know who you are...you don't invest with him, but love stealing his ideas and eating his hor d'oeurves! How many presentations and speeches has he done...like he's not busy enough? How many kids has he put through Dakshana into the IIT's? There's alot more to like about Pabrai, than not like, that's for sure! And who has the balls at his age to wear spandex when cycling (recurring joke by me)! Cheers!

Congratulations Keith! All the best!

Some companies do that already...license the software, etc. There is some competition in North America and in Canada in terms of telemedicine...including some fairly significant acquisitions. No one in Canada is offering 24/7 access across all provinces and territories, or remote access as snowbirds, travellers other than goevisit.com. The number of telemedicine visits is probably in the tens of thousands in Canada on an annual basis now. That number seems to be growing around 90-110% annually depending on data sources. No one in Canada is attempting to scale like goevisit.com on a national level. Cheers!

Different crowd that goes to the parks. Drive anywhere in downtown or even suburbs of Vancouver, and you will see more BMW's, Mercedes, Lexus, Range Rovers, Supercars on a per capita basis than anywhere outside of say Monaco, Hong Kong or Dubai. Immigration problem like most countries, but nothing like what you guys have on your southern border. Cheers!