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Pabrai Funds AGM


Parsad

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It was another great time at the Pabrai Funds AGM.  I met alot of wonderful people, and it was great to see many faces from the board here as well.  One particular individual...thank you very much for the wonderful comments you made to me at dinner about the message board and a small token favor I did for you in Toronto...it made my day!

 

Mohnish switched up the AGM location this year and it was held at SOKA University of America's Performing Arts Center.  A stunning campus on a hill in Alisa Viejo with only 300 students...lucky students!  You can see from the pictures exactly how beautiful this place is.  The Performing Arts Center was a wonderful venue with a screen of nearly IMAX proportions...again see the picture! 

 

Mohnish did about a 35-40 minute presentation and then answered questions for over an hour.  Plenty of things were discussed including RIM, macroeconomics, porfolio allocation, intrinsic value of the Pabrai Funds, global investing, philanthropy, using a sounding board (colleague), and of course his mistakes.  I can't really do the presentation and Q&A justice, as Mohnish has become very good at translating ideas through analogies and humor.  You just had to be there!  ;D 

 

One question that was not asked, and I'm very surprised that it wasn't, was the comment Mohnish made in his last letter about there being one CEO that was superior to the others in the portfolio.  No one asked!  By the way, he wouldn't tell me when I had dinner with him the night before the AGM, so it probably would have been in vain anyway.

 

The turnout was a little less this year.  Not sure if it was because nothing that significant happened in the last year, or possibly the venue was a bit different...a few people mentioned that they preferred the Huntington Beach AGM because they could spend the weekend there with their families, especially children, and there was much more to do after the AGM, again, being able to hang out with attendees somewhere.  Both are stunning venues and neither takes away from the actual presentation and event.

 

Finally, Mohnish and Guy Spiers had done a great presentation for UC Davis, and the hosts presented him with a thank you gift...a caricature of them both.  I've attached a photograph of it.  Cheers!

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Were there any comments to note regarding his portfolio positions?

 

No he doesn't really comment on his current holdings.  There was a long, hypothetical question about BAC, but it did not gain any traction.  He did talk about his mistake in buying Fannie & Freddie Preferreds, and that he felt the equity positions in the funds were worth over $1B based on his estimates of intrinsic value, and that they were of the highest quality the fund has held.  Cheers!

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what's the market value of the equity positions at this point?  (i.e., how much upside is the 1 billion)?

 

Thanks for the info!

 

About $430M.

 

What did he say about RIMM?

 

Pretty much what Prem stated...that the dollar amount relative to the assets under management is not something that should perturb shareholders. 

 

Cheers!

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what's the market value of the equity positions at this point?  (i.e., how much upside is the 1 billion)?

 

Thanks for the info!

 

His current portfolio size is around $500M AUM, so the $1b would be his intrinsic value estimate, but not the current portfolio value. Mohnish and his family as general partners own about 10% of these AUM.

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Great cartoon pic,...seems to me, that Mohnish & Guy are the Muppet Show's old men from the balcony,... almost like WeB & CM.

 

Buffett & Munger are the old men from the balcony.  Mohnish and Guy would be Kermit and Fozzie!  ;D  Cheers!

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Just looked at his latest holdings, quite the concentration! surprised AIG isn't in there as well

 

I believe he did discuss AIG and it was just a comfort thing...anyone else who was there, can you confirm that.  I've got the Pabrai Funds presentation, Annual Report, Dakshana Report and everything else floating around in my head right now.  Cheers!

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Just looked at his latest holdings, quite the concentration! surprised AIG isn't in there as well

 

I believe he did discuss AIG and it was just a comfort thing...anyone else who was there, can you confirm that.  I've got the Pabrai Funds presentation, Annual Report, Dakshana Report and everything else floating around in my head right now.  Cheers!

 

I talked with him in Toronto,... there he said something, that AIG wasn't in his circle of competence... but forgot his exact words. Well, I did wonder a little,... because I thought that he would follow AIG at least a little bit,... and also know BB@Fairholme thesis.

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