It ain't easy being known as "the next Warren Buffett." It's certainly not a title I'd want to have to live up to. For years, value investor Mohnish Pabrai cranked out phenomenal returns through his Buffett-esque investing style, earning him a near cult following.
The past year, however, has been a little shaky. His investment style -- based on the premise of never losing permanent capital -- took a detour when Delta Financial went bankrupt late last year. Was it a bad investment? In hindsight, yes, but at the time it looked like a steal. Easy come, easy go.
What's Mohnish been up to lately? As a big investor, he's periodically required to disclose some of his positions. Here's what Mr. Dhandho himself poked around in during the last quarter.
Buys
A new position was formed in tax preparer Jackson Hewitt
Pabrai also upped his previous stakes in WellCare Health Plans
Sells
Pabrai seems to have ditched his position in Stamps.com
What to make of it all
Some investors have given up on Pabrai after a year of dismal performance. "He's just been lucky until now," they say. That's nuts. There are few investors who've proved they have not only the stellar stock-picking acumen, but also the proper mental mindset, as well as Pabrai has. When your investment model is rooted in holding a few concentrated positions, rough patches happen. As Yogi Berra says, "Slump? I ain't in no slump … I just ain't hitting."
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