Author Topic: Pabrai Funds Meet In Chicago  (Read 11085 times)

Parsad

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Pabrai Funds Meet In Chicago
« on: September 06, 2009, 04:12:11 PM »
Hi Folks,

I emailed Joe Koster last week, and he suggested that everyone that is attending the Pabrai Funds AGM in Chicago meet at the lobby/lounge of the Marriott Suites O’Hare around 2pm, which is right next to Carlucci’s.  I’ll confirm with Joe when he gets back home on Tuesday or Wednesday, and if there are any changes, I’ll make a subsequent post.

For those interested in hitting a Steak’n Shake, Sardar told me that this week is a great time, as they will have new products out.  He’s also interested in any feedback we can offer after visiting the restaurants.  I’ll be hitting three, so anyone who wants to go to one let me know and we can go as a group.  I’ll be hitting the one in Rosemont late Thursday night after my flight arrives, another on Friday around 3-4pm and probably one Sunday around noon…and yes, I’m going to take it very easy at each visit!  I’ll also try and hit one of the HI-owned Hooter’s in down town Chicago, as I have a meeting there Friday morning…not at Hooter’s, but somewhere else.

If you plan on coming to the Marriott, let me know (sanjeevparsad@shaw.ca) so that I can get some nametags printed up.  If there are any changes, I'll update as necessary here.  Hope to see you guys there!  Cheers!

No man is a failure who has friends!


Parsad

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Re: Pabrai Funds Meet In Chicago
« Reply #1 on: September 09, 2009, 08:49:02 PM »
Hi Folks,

So after talking to Joe, it's all set for Saturday in Chicago.  We will meet at 2pm at the Marriott Suites O'Hare (6155 North River Road, Rosemont, IL (847)696-4400).  From there, we'll just walk over to the Pabrai Funds AGM at Carlucci's around 4pm.  See you all there!  Cheers! 
No man is a failure who has friends!

dcollon

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Re: Pabrai Funds Meet In Chicago
« Reply #2 on: September 11, 2009, 01:27:20 PM »
See you guys tomorrow.

frog03

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Re: Pabrai Funds Meet In Chicago
« Reply #3 on: September 12, 2009, 08:49:47 AM »
Did you guys learn anything interesting?

Parsad

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Re: Pabrai Funds Meet In Chicago
« Reply #4 on: September 12, 2009, 09:25:44 AM »
Meeting isn't till tonight.  We'll let you know tomorrow or Monday.  Cheers!
No man is a failure who has friends!

dcollon

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Re: Pabrai Funds Meet In Chicago
« Reply #5 on: September 14, 2009, 11:01:55 AM »
I'm still working on my notes, but Mohnish mentioned the following article during his presentation.

http://www.newyorker.com/reporting/2007/12/10/071210fa_fact_gawande?printable=true

Some of you might already be familiar with it, but if not it's worth reading.  Mohnish has actually spoken with Gawande and it has helped establish his checklist that he uses for investing.

I also found this Gawande article to be interesting as well.

http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_gawande?printable=true

It was really nice having a chance to meet some members on this board and some new people as well.

Parsad

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Re: Pabrai Funds Meet In Chicago
« Reply #6 on: September 14, 2009, 11:25:03 AM »
Mohnish was very funny!  I told him in another life he was either a very well-liked professor or a stand-up comedian, as his ability to transfer knowledge with terrific analogies and humor is very good.  A few things he said:

- They are net sellers of stocks presently, and he feels retail and consumer spending will be tough for a few years.
- Pabrai funds have done over 100% this year, but have a bit more to do to get back up to the peak levels.
- On the question of how to raise capital for a fund:  You have to convince your partners that it is their sole purpose in life to raise money for you!  I was cracking up laughing after hearing that one.
- On a question regarding one of his mistakes...I believe Compucredit:  I was stupid!  Again the audience roared in laughter.
- As dcollon mentioned, checklists have become important to the Pabrai Funds...but they don't decide on an investment.  They just give an overview of how deficient or acceptable the idea is.
- On the idea of a less concentrated portfolio when he brought it up with Munger, who interrupted him and said:  You are going in the complete opposite direction of my thought process on this matter.  He said Munger accepted his proposal once he explained that it was because he was managing other people's capital, rather than his own money.
- Mohnish experiments with strategies in his own portfolio.
- Believes Berkshire’s value should be calculated in the most conservative manner possible at this point, as the range has widened significantly due to the long-term and incalculable investments Buffett has made recently…primarily the derivatives bets.

Anyone who has read “The Snowball” knows that one of Buffett’s strongest characteristics is his ability to make others feel better about themselves.  Mohnish seems to be learning this little philosophy, because regardless of the questions asked, he always made the individual feel as though that question was the best one asked yet. 

His presentation skills have become incredibly polished, as is his delivery.  He also recalls name after name of people coming up to him without having to look at their nametags.  Pretty impressive stuff considering how many people he meets these days all over the world!  Even Mohnish’s wife Harina remarkably keeps up with all the names and faces, and greets everyone so warmly with great interest. 

The atmosphere at Carlucci’s is very intimate, so it is easier to move from table to table than say the meeting in California which is in a gigantic ballroom.  About 200 people or so came to the Chicago meeting, whereas California has around 300-350 people attend.  We had about 15 people or so show up to the lounge before the meeting, and it was nice to meet them all.  I really enjoyed my brief time in Chicago…beautiful architecture, restaurants, people, sights…very nice!  Plus I hit three Steak’n Shakes in 48 hours!  Cheers!   
No man is a failure who has friends!

Munger_Disciple

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Re: Pabrai Funds Meet In Chicago
« Reply #7 on: September 14, 2009, 11:46:49 AM »
Parsad,

Can you please expand on Mohnish's comment regarding Berkshire's value? I don't quite get his comment about range widening.

Thanks,
Sreenr

Parsad

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Re: Pabrai Funds Meet In Chicago
« Reply #8 on: September 14, 2009, 11:49:45 AM »
Hi Sreenr,

Basically, Mohnish was saying that the value of certain investments like the S&P puts contracts will not be known for many years, thus that is a question mark.  So when you are doing intrinsic value calculations, make sure you are very conservative in your estimates, as that remains an underlying risk.  I think everyone assumes that it will work out ok, but to protect yourself as an investor, you need a signficant margin of safety.  Cheers!
No man is a failure who has friends!

rohitc99

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Re: Pabrai Funds Meet In Chicago
« Reply #9 on: September 14, 2009, 02:20:58 PM »
what i remember about mohnish's response on berkshire is that some of the subs such as borshiems, shaw etc are more exposed to the economy than say the insurance or the utilities. His current thought process is that the essentials (example given was costco v/s tiffany) are likely to do better than the others.

In view of this, mohnish felt that the uncertainity regarding these subs is high and hence his advise was to estimate the fair value of berkshire on the lower side.

I was completely blown away by the analogy of aviation checklist with investment checklists. mohnish had slide on how FAA analyses each crash and tries to come up a procedure or checklist to prevent it in the future. In a similar fashion, mohnish has looked at his and other's mistakes to develop an investment checklist (each investment loss is akin to an airplane crash)

it was a great meeting for me as i had a chance to meet up with several of the board members and there is always a lot to learn from mohnish's presentation