Mohnish Pabrai (Dalal Street) 13F HR

[investmd]

@Parsad well said.

 

After pursuing an active investment management strategy for the past 2 decades, sobering to see that not a single value manager I know of - even the zero fee funds ones - have outperformed the S&P 500 for the past decade. 

 

Anything can happen going forward, but I'm curious to hear arguments as to realistic risks for long term investors of investing in US index vs. active managers like the ones you mentioned. Even though S&P 500 is heavily weighted to MAG 7, should Tesla, Nvidia etc. collapse, there will be new ones creeping up in the index. 

[investmd]

On 11/14/2023 at 1:43 PM, Parsad said:

 

Mohnish is a very good friend.  I'm sure retail investors for years have been clamoring to find a way to invest with him, and this is probably the solution for those that aren't accredited and/or can't get a slot in any of the original Pabrai Funds.  Good for those investors and good for Mohnish.

 

That being said, for most investors, they would be better off just buying a cheap S&P500TR index and averaging in money each year.  Buying into Pabrai Wagon Fund or the Chou Funds or McElvaine Trust...all really good friends of mine...for non-accredited investors, it is the only way to get access to those managers.  But mutual funds with high expense ratios generally won't outperform the market index over the long-term. 

 

At the very least, if you are insistent on access to these managers, maybe hedge the bet and put half your money into them and half into an index fund.   

 

Cheers!

 

Just now, investmd said:

@Parsad well said.

 

After pursuing an active investment management strategy for the past 2 decades, sobering to see that not a single value manager I know of - even the zero fee funds ones - have outperformed the S&P 500 for the past decade. 

 

Anything can happen going forward, but I'm curious to hear arguments as to realistic risks for long term investors of investing in US index vs. active managers like the ones you mentioned. Even though S&P 500 is heavily weighted to MAG 7, should Tesla, Nvidia etc. collapse, there will be new ones creeping up in the index.