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Pabrai and Guy Spier


rjstc
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Just listened to an interview on an online value conference concerning stocks in Japan. First Pabrai and Speier still sounded very high on B of A. Also Pabrai said he has about 60% of his familys money in one stock and would like to get it up to 90%. Also said he is using a basket approach to buy stocks in Japan that he bought using a screen.

 

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Guest Feynman

Also Pabrai said he has about 60% of his familys money in one stock and would like to get it up to 90%.

 

:o

My thoughts exactly. He must be extraordinarily confident in his pick. I wonder if he has any other plans for the company?

 

As for Japanese equities... I am still skeptical. There seem to be cultural roadblocks that will most likely hamper their success. Looking purely at screens to find net-nets is not difficult. Understanding how Japanese companies function culturally is doable, but getting inside that world and then affecting change to unlock value as a silly gaijin is a serious challenge. Perhaps they can simply buy their way in...

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The people at Manual of Ideas which I subscribe to had an online investor conference in Oct. featuring European investments. Then last week had one featuring Japan. They had some really great interviews with people that have experience investing in those areas. Speier was interviewed in the European one and then he and Pabrai were interviewed together in the Japan online conference. Personally I feel that I got some really good ideas from both. Ideas that I probably wouldn't have found otherwise and they were pretty in depth discussions.

 

  Feynman; Concerning the Japanese stocks. I believe their thought was that many of the stocks are so cheap that they are allocating a portion of assets there like they might in other bargain stocks in other regions. Like net-nets elsewhere the catalyst doesn't really come from the "Gaijins". Usually some other thing prompts the realization of value. There was one presenter who said his firm does work with some managements to unlock value or find synergys with other firms. But they all said you had to have patience. Like with many value situations. 

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I thought Pabrai had almost all his personal money in his funds -- can you clarify, rjstc, if he meant his money outside his funds or if he has removed his money from his funds for this investment or some other permutation?

 

It doesn't matter to me -- just curious.

 

The bulk of his net worth, and pretty much all of the incentive fees he has earned over the years, is in the funds, but Mohnish had money before starting the funds too.  Also, I believe he and his wife have retirement accounts outside of the funds, and any college funds/trusts for his children are outside of the funds.  So that is probably the capital he refers to when he talks about his family's investments.  But for all intents and purposes, I would guess at least 80% of his money is tied up in the funds...interests are definitely aligned with partners.  Cheers! 

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He said good manager, strong tailwinds, a few confluences happening at the same time. Also Speier said the guy who bought the lunch with him and would be getting his old wallet with a stock tip in it would probably be getting a clue from the discussion or the stock tip. Pabrai didn't comment. I believe Parsad is right because he did mention his daughters account and also some family money but didn't completely explain. 

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Both Indirectinvestor and I tried to pry it out of him over dinner, but to no avail. 

 

Indirect thinks it is a company that some of you would be familiar with, and in fact it has been discussed in the "Investment Ideas" board...yes, I know that doesn't really narrow it...but he's pretty confident that is it. 

 

I on the other hand can't see that being the idea, but have no idea what it is...I don't think it is BAC, even though BAC makes up a very significant portion of the Pabrai Funds. 

 

Go to work my minions!  ;D  Try and give it a guess, and eventually we'll see who had the correct answer.  Cheers!

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I'm guess it's AAPL.

 

LOL!  Nice. 

 

By the way, I don't think it's DELL either, because he told me I'm going to take it up the butt on that one...to put it nicely!  ;D 

 

Cheers!

 

Haha, that's interesting.  Don't worry, we'll prove him wrong!  It may take a while, though. ;D

 

Seriously, though, if I were in Pabrai's position, the only place I would put 90% of my non-LP net worth would be BRK or FFH.  And only BRK at this point in time, given the market pricing.

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Gm would be my next guess. Definitely has strong tailwinds. Or maybe byd?

 

I would not be surprised if it was BYD, as Munger also has a huge portion of his wealth invested in it.  But I still don't understand BYD and cannot fathom putting that much into it.  Cheers!

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