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Don't sell for at least 2 years regardless of what happens?

I don't recall Pabrai saying this, but maybe I am wrong. I think what he says in the book is hold for 2-3 years if nothing has fundamentally changed your thesis. Isn't that value investing 101? If you buy a 50-cent dollar and it takes three years for someone to buy that dollar from you for a dollar, then it's worth the wait for the annualized 26% return. Of course he says it usually takes about 18 months for the market to recognize his valuation. A 100% return in 18 months is 59% annualized.

And with the USAP example, why on earth wouldn't you buy more when it fell to $5, as opposed to waiting until it got back to $15?

Did he say he bought more when it came back up to $15? I don't recall that he did say that in the book, but again I could be wrong. Why not buy more when it went to $5? Not enough cash? Everything else was firing on all cylinders? Ah, hindsight is a wonderful thing, isn't it?

So I don't think he has a good selling philosophy.

Hindsight again. "Leaving money on the table" is totally irrelevant if you can consistently buy 50-cent dollars and sell them back to the market in 18 months for a dollar each.

As Pabrai Funds continues to grow--now upwards of half a billion--it will be interesting to see his thinking change and his ability to steer a large ship.
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