Mohnish Pabrai - Pabrai Investments Portfolio
![](https://www.michael-burry.com/wp-content/uploads/2024/02/portrait-of-mohnish-pabrai-investment-analyst-and-philanthropist-captured-in-a-burst-of-abstract-a-220817645-300x300.jpg)
Mohnish Pabrai - Pabrai Investments Q2 2024 Portfolio
Pabrai Investments, an investment fund managed by Mohnish Pabrai, disclosed 4 security holdings in their SEC 13F filing for the second quarter of 2024, with a total portfolio value of $232,830,000
As of Q2 2024, Mohnish Pabrai’s portfolio reflects a concentrated investment approach with significant positions in the coal mining sector. Below is a detailed overview of his top holdings:
AMR – Alpha Metallurgical Resources Inc.
- Portfolio Allocation: 54.09%
- Recent Activity: Added 11.03%.
- Shares Held: 448,960.
- Reported Price: $280.53 per share.
- Value at Reported Price: $125,947,000.
Alpha Metallurgical Resources is the largest holding in Pabrai’s portfolio, reflecting a strong conviction in the coal mining sector. The increase in shares suggests confidence in the company’s ability to generate substantial returns, possibly driven by strong demand and pricing in the coal market.
ARCH – Arch Resources Inc.
- Portfolio Allocation: 25.66%
- Recent Activity: Added 179.66%.
- Shares Held: 392,388.
- Reported Price: $152.23 per share.
- Value at Reported Price: $59,733,000.
The significant increase in Arch Resources shares indicates a bullish stance on the coal industry, with Pabrai making a substantial bet on the company’s growth prospects. This large addition suggests that Pabrai sees Arch Resources as a key player in the sector.
HCC – Warrior Met Coal Inc.
- Portfolio Allocation: 12.71%
- Recent Activity: Added 0.16%.
- Shares Held: 471,519.
- Reported Price: $62.77 per share.
- Value at Reported Price: $29,597,000.
Warrior Met Coal remains a consistent holding, with a slight increase in shares. This reflects ongoing confidence in the company’s operations, particularly in the metallurgical coal market, which is essential for steel production.
CEIX – CONSOL Energy Inc.
- Portfolio Allocation: 7.54%
- Recent Activity: Reduced 53.00%.
- Shares Held: 172,038.
- Reported Price: $102.03 per share.
- Value at Reported Price: $17,553,000.
The significant reduction in CONSOL Energy shares suggests a strategic move to take profits or rebalance the portfolio, while still maintaining exposure to the coal sector. This reduction could indicate a shift in focus or a reassessment of the company’s growth potential relative to other investments.
Analysis of Top Holdings:
1. Alpha Metallurgical Resources Inc.: The largest position with an increase in holdings, indicating strong confidence in the coal mining sector’s profitability.
2. Arch Resources Inc.: Significant addition reflects a bullish outlook on the coal industry and the company’s strategic positioning within it.
3. Warrior Met Coal Inc.: Steady holding with a slight increase, showing continued belief in the metallurgical coal market.
4. CONSOL Energy Inc.: Large reduction suggests profit-taking or a strategic rebalance, while still maintaining some exposure to the sector.
Overall, Mohnish Pabrai’s Q2 2024 portfolio is heavily concentrated in the coal mining sector, reflecting a deep conviction in the industry’s prospects. The portfolio adjustments, including significant additions to Arch Resources and Alpha Metallurgical Resources, demonstrate a focus on companies that are likely to benefit from strong demand and pricing in the coal market. The reduction in CONSOL Energy may indicate a strategic shift or profit-taking as part of portfolio management.
Who is Mohnish Pabrai ?
June 12, 1964:
Mohnish Pabrai was born in Mumbai, India.
1983:
Pabrai studied Computer Science at Clemson University, South Carolina.
1986-1991:
Pabrai works at Tellabs, initially in the high-speed data networking group before moving to the international subsidiary in 1989.
1991:
Pabrai marries Harina Kapoor. In the same year, he starts his IT consulting and systems integration company, TransTech, Inc., with initial capital from his 401(k) and credit card debt.
1999:
Pabrai founds Pabrai Investment Funds, a family of hedge funds inspired by the Buffett Partnerships.
2000:
Pabrai sells TransTech, Inc. to Kurt Salmon Associates for $20 million.
2005:
Mohnish Pabrai and Harina Kapoor start the Dakshana Foundation, aiming to alleviate poverty in India by providing tutoring services to underprivileged members of Indian society.
June 2007:
Pabrai, along with Guy Spier, bids $650,100 for a charity lunch with Warren Buffett, which makes headlines.
2001-2003:
Pabrai authors a series of articles on investing, later compiled in his book “Mosaic: Perspectives on Investing.”
2019:
Pabrai and Harina Kapoor divorce.
Mohnish Pabrai's Investing Principles
Focus on undervalued businesses with strong fundamentals and a competitive advantage.
Mohnish Pabrai
Employ a long-term investment horizon and avoid chasing short-term market trends.
Mohnish Pabrai
Maintain a diversified portfolio but concentrate on a few high-conviction investments.
Mohnish Pabrai
Develop a circle of competence and only invest in businesses you understand well.
Mohnish Pabrai
Be patient and disciplined, waiting for the right opportunities to arise.Embrace a margin of safety by buying stocks significantly below their intrinsic value.
Mohnish Pabrai
Learn from the mistakes of others and the wisdom of successful investors.
Mohnish Pabrai
Mosaic: Perspectives on Investing
Mohnish Pabrai, a renowned value investor and philanthropist, has long been admired for his investment strategies that echo the philosophies of Warren Buffett and Charlie Munger offers valuable insights into the world of value investing in his book “Mosaic: Perspectives on Investing.” Originally a collection of articles, the book delves into Pabrai’s investment philosophy, drawing heavily on the wisdom of Buffett and other legendary investors.
Pabrai emphasizes the importance of understanding the intrinsic value of a business rather than solely focusing on its stock price. He encourages investors to develop a margin of safety by buying stocks at a significant discount to their intrinsic value, offering a buffer against potential market fluctuations.
Unveiling the Mosaic Theory
The mosaic theory, a central theme in Pabrai’s book, suggests that investors can gain a comprehensive understanding of investment opportunities by piecing together disparate bits of publicly available information. Like a mosaic artist arranging fragments to create a complete picture, investors analyze various data points to make informed decisions. Pabrai emphasizes that this approach requires patience, diligence, and a keen analytical mind.
Pabrai’s Top Investing Principles
Value Investing at the Core: Pabrai is a staunch proponent of value investing, a principle rooted in acquiring stocks at prices significantly lower than their intrinsic values. This margin of safety provides a cushion against errors in judgment and market volatility.
Focus on Few Bets, Big Bets, Infrequent Bets: Borrowing from Munger’s philosophy, Pabrai advocates for concentrating investments in a limited number of high-conviction opportunities rather than diversifying extensively. This approach is predicated on the belief that quality trumps quantity in the investment world.
Clone Investment Ideas: Pabrai does not shy away from “cloning” investment ideas from successful investors. He argues that following the footsteps of proven investors can lead to significant gains, as long as one deeply understands the rationale behind the original investment.
Invest with a Business Owner’s Perspective: Pabrai encourages investors to perceive stock purchases not as buying shares but as acquiring portions of businesses. This perspective fosters a deeper understanding of the underlying business and its long-term potential.
Understand the Power of Compound Interest: Pabrai highlights the exponential growth potential of investments through compound interest. He underscores the importance of patience and the long-term horizon in realizing significant returns.
Risk and Uncertainty are not Synonymous: Pabrai distinguishes between risk (the likelihood of permanent loss of capital) and uncertainty (the range of possible outcomes). He suggests that embracing uncertainty can lead to lucrative investment opportunities, provided the risk is minimal.
Be Contrarian: Pabrai believes in going against the crowd when fundamentals strongly support an investment. Contrarian bets, made after thorough analysis, can yield substantial rewards when the market corrects its misjudgments.
Margin of Safety: Echoing Benjamin Graham, Pabrai insists on a significant margin of safety in every investment. This principle acts as a buffer against miscalculations and unforeseen market downturns.
Look for Low-Risk, High-Uncertainty Situations: These situations, according to Pabrai, are fertile grounds for value investors. The market often overreacts to uncertainty, creating opportunities to buy undervalued stocks with minimal risk.
Invest in Simple Businesses: Pabrai advises against investing in businesses that are difficult to understand. Simplicity in business model and operations often translates to predictability and stability in earnings.
Conclusion
“Mosaic: Perspectives on Investing” is not simply a collection of investing formulas; it’s a call to develop a long-term investment mindset based on sound principles and a deep understanding of the businesses you invest in.