Mohnish Pabrai’s long-only equity fund has returned a cumulative 517% net to investors vs. 43% for the S&P 500 Index since inception in 2000. That’s outperformance of 474 percentage points or 1103 percent. [Disclosure: I and/or some of my clients are long Pabrai’s fund or specific holdings within his fund.]
To anticipate your next question: Yes, his fund is closed to new investors. But there is still hope. Read on — sadist that I am, I put the answer at the end
Pabrai is a classic value investor in the tradition of Warren Buffett, Charlie Munger, Seth Klarman and Joel Greenblat. I recently had an opportunity to hear him talk and thought I’d pass along some of my bright yellow highlighting.
How to start investing
For Pabrai, this yellow brick road begins with Warren Buffett’s annual letters to shareholders (totaling 730 pages, now conveniently available for your Amazon Kindle for $2.99 cheap). From there he recommends the Buffett biographies (mentioning the ones byLowenstein and Schroeder). I might add, though he didn’t, that you could do worse than to read Pabrai’s own book, The Dhando Investor.