I have been made aware that scammers and fraudsters are using my name, picture and doctored videos to target people online with fraudulent attempts to send money to be invested in non-existent investment schemes or for compensation for investment tips. The examples I’ve seen so far have been in perpetrated in India, but they may be elsewhere too. These are totally fake. Please read below to protect yourself:
In late December 2016, I co-wrote an article on Forbes.com that introduced the "Uber Cannibals," a five-stock investing strategy that invests in businesses aggressively buying back their own stock. This is a "set it and forget it for one year" strategy that rebalances every April when 5 companies are selected for the portfolio for the upcoming year.
The Uber Cannibals draft season is now upon us, and it's time to pick our 2018 - 2019 team.
As a recap, in my 3/31/17 blog post, we met Ms. Sonia Patel, who had embarked on her Uber Cannibals investing journey with $100,000 from her IRA account at Interactive Brokers. Sonia invested in the first 5 Uber Cannibals on 1/3/17, and then rebalanced her portfolio in April 2017 with the 2017 - 2018 Uber Cannibals, which were:
As of 3/29/18, Sonia's $100k was worth $130,646 (after trading costs), up 30.6%. If Sonia had instead invested in the S&P 500 over that period, she would be up 20.9% and her portfolio would be worth approx. $10k less, or $120,907.
Lowe's and Hackett Group paid dividends totaling $744. Per our rules, Sonia reinvested those dividends back into the same businesses.
The Ubers are doing quite well! This strategy makes sense if you intend to follow it for at least a decade or two (or longer). So we shouldn't fixate too much on short term performance. But I am happy to see that Sonia is off to a great start. Keep at it Sonia!
The New Uber Cannibals:
For 2018 - 2019, our algorithms selected the following five Uber Cannibals:
Sleep Number Corp. (which recently changed its name from Select Comfort) will continue to be in the portfolio for another year. But we have four new kids on the block.
If you invested in the Uber Cannibals in April 2017, then leave Sleep Number Corp untouched, and sell Lowe's, NVR, Hackett, and Willis Lease. Then invest the proceeds equally among the four new kids: Corning, PulteGroup, Discover Financial Services, and Lear.
Below is the 1 year return of the 2017-2018 Uber Cannibals through 3/29/18:
If you invested in the Uber Cannibals in April 2017 in a taxable account, try to sell the winners (currently Lowe's, NVR and Willis Lease) after holding them for at least 366 days and the losers (Hackett) after no more than 364 days.
If you are a new investor to the Uber Cannibals, you can just equal weight the five stocks (i.e., invest the same amount of money in each of these five) and keep that portfolio until April 2019, when I'll provide the 2019 - 2020 portfolio on www.ChaiWithPabrai.com. Happy Cannibal Investing!
Note, anyone who invests in any strategy needs to do their own research/due diligence and are themselves fully responsible for the outcome.
I very much enjoyed visiting the campus of Peking University's Guanghua School of Management with Guy Spier and Monsoon Pabrai to give my second lecture entitled “Compounding is the 8th Wonder of the World.”The presentation was followed by a rich Q&A session on a diverse range of topics. The lecture covered my favorite subjects – compounding, Rule of 72 and Warren Buffett.
Enjoy!
https://www.youtube.com/watch?v=z74NaYRyMJo&t=6564s
Here is the link to the podcast:
If you prefer reading over listening, here is the transcript.
I very much enjoyed my lecture and Q&A entitled “Compounding is the 8th Wonder of the World” with Dakshana Scholars at the Dakshana Valley Campus on Dec. 26, 2017. The questions covered a broad range of topics related to compounding, including philanthropy, patient investing and choosing equities over other asset classes.
https://www.youtube.com/watch?v=VvpfjxLiO9g&feature=youtu.be
Enjoy!
It was truly an honor to receive a shout-out by Charlie Munger during the Daily Journal Annual Meeting in Los Angeles on February 14, 2018. Charlie was discussing the fair investment management fee structure of the Buffett Partnerships of the 1950s, which I have enthusiastically cloned for 19 years.
https://www.youtube.com/watch?v=lfRWWxo3Y4Y
Enjoy!
I very much enjoyed this joint Q&A session that Motilal Oswal founder Raamdeo Agrawal and I had with Dakshana Scholars at JNV Bengaluru Urban on Oct. 26, 2017. We discussed compounding, being a learning machine and the importance of learning from your failures in investing.
Enjoy!
https://www.youtube.com/watch?v=_4WRC5W92k8
I very much enjoyed my chat with Niraj Shah of Bloomberg Quint for Alpha Moguls. We discussed the importance of sticking to one’s circle of competence, the advantage of auction-driven stock market investing and the prospects of investing in the real estate sector in Mumbai.
Enjoy!
https://www.youtube.com/watch?v=XBY6aLezago&app=desktop
I very much enjoyed speaking with Shai Dardashti of MOI Global for their Best Ideas 2018 session. We discussed philanthropy, the Dakshana Foundation and the influence that Buffett had on my founding Dakshana.
Here is the link to the recording:
https://www.youtube.com/watch?v=S6fUDLa1Dq0
If you prefer to read, here is the transcript of the interview:
https://moiglobal.com/mohnish-pabrai-philanthropy/
Enjoy!
I very much enjoyed my discussion with Prof. Arvind Navaratnam’s class on Value Investing at the Carroll School of Management (Boston College). It was my seventh year in a row!
The talk covers the magic of compounding, cloning Buffett, the zero fee structure and moats in the investment business.
Enjoy!
https://www.youtube.com/watch?v=_1aGen3q2_g&feature=youtu.be
Here is the link to the podcast:
If you prefer reading over listening, here is the transcript.
I co-authored an article in Forbes about The “Free Lunch” Portfolio, which combines the power of Uber Cannibals, Shameless Cloning and Spinoffs. The Free Lunch Portfolio is a 15-stock, 12-month “set it and forget it” approach that beats the pants off the S&P 500 with lower volatility than its individual 5-stock sub-strategies.
You can view the article here:
https://www.forbes.com/sites/janetnovack/2017/12/15/the-free-lunch-15-stock-portfolio/#1706edc76b38
Here are the 2018 constituents for The Free Lunch Portfolio:
Uber Cannibals
Shameless Cloning
Spinoffs
Investing in The Free Lunch Portfolio is simple. Invest equally across the 15 companies. When we publish the new Uber Cannibals in April, sell the Ubers that are no longer on the new list and invest the proceeds equally across the new Uber Cannibal picks. In January, 2019, when we publish the updated Shameless Cloning and Spinoffs, sell the companies that do not make the New Year’s picks and invest the proceeds equally in the new kids on the block across the two strategies combined.
I co-wrote the article with Fahad Missmar, CFO of Dhandho Funds.
Enjoy!
Note, anyone who invests in any strategy needs to do their own research/due diligence and are themselves fully responsible for the outcome.
I co-wrote an article in Forbes on a 5-stock investment strategy focused on spin-offs, or companies that have recently spun off from their parents. The Spinoff Portfolio is a “set it and forget it for a year” strategy that selects five young spinoffs on January 1st of each year. The full strategy rules are laid out at the end of the Forbes article.
For 2018, our algorithm has selected these 5 spinoffs:
Investing in The Spinoff Portfolio is simple. Just buy the 2018 constituents in early January, putting 20% of the pie in each of the five names. I’d suggest not putting more than 10%-20% of your net worth in this strategy. Like the Uber Cannibals and Shameless Cloning Portfolio, we set it and forget it (for a year). I will publish The Spinoff Portfolio for a particular year on my blog by January 1st each year. This strategy only makes sense if you intend to follow it for at least a decade or longer. The ideal home for this strategy is your IRA. That way, there are no realized gains to worry about.
You can view the article here:
I co-wrote the article with Jaya Bharath Velicherla, a talented quant at Dhandho Funds.
Enjoy!
Note, anyone who invests in any strategy needs to do their own research/due diligence and are themselves fully responsible for the outcome.
