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I read Mohnish Pabrai's Mosaic last weekend, and wanted to bring it to your attention. This is a wonderful little (138 pages, including author bio) investment book, and I think you should read it.Before I talk about the book, let me tell you about Mohnish. He started his fund in mid-1999 with $1 million, and now assets are over $300 million. Why the rapid growth in assets? Knock-the-lights-out performance, that's why.Net annualized returns to investors since inception is 29.4%, Mohnish told me in a recent e-mail. In dollars, a $100,000 investment in Pabrai Funds at inception on July 1, 1999 was worth $569,800 as of March 31, 2006 (net to investors). Meanwhile, a $100,000 in the DJIA grew to $115,800 during the same period.So I think we can agree that Mohnish is qualified to write an investment book.Actually, this is not so much a book as it is a compilation of columns from the early 2000's for TheStreet.com, Silicon India Magazine, and The Motley Fool. As a result, some of the information, i.e., certain Buffett quotes, are repetitive. But this is a minor quibble. What makes Mosaic an important book is the author's emphasis on 1) the fleeting nature of most competitive advantages and 2) the importance of buying at a discount to intrinsic value.There is some other good information in this little gem. But I do not want to spoil the fun. I think if you read this book and absorb the lessons, your investment returns will improve. I highlighted several sections of the book, and you will too.Mosaic is available on Amazon.com Hewitt
Looking at Pabrai's 13F filed 12/31/05 it is evident that he believes in a concentrated portfolio. He listed 12 or 13 stocks at that time.
missash -Woodward and Bernstein want me to ask you, "What's he own?"Hewitt
Woodward and Bernstein want me to ask you, "What's he own?"Please add Buffjan to that list of people that want to know "What's he own?"
If you think this is concentrated he said at the value investing congress he wants to narrow it down to 7-8 companies...
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