My Investing Muse

Help! Charlie Munger has sold 50% of his holdings in    $BABA . Do we need to follow him?  If we ask the above question, it is likely that we have not done a deep dive into the business . Charlie Munger sold 50% of his BABA shares. People buy for 1 reason (to profit from the investment) but they can sell for a thousand reasons .   What could have led Mr Munger to sell may not be the same consideration for us.  If the stock is so bad, why should he still keep 300,000 shares?  If it is to "stop loss", wouldn't it be better for us to sell all?  This is important as we need to qualify our investment decisions through our own research.  We cannot invest based on borrowed conviction . Peter Lynch said this "If we are not able to explain the business to young children in 5 minutes, we do not know the business enough." The main consideration for our investments should be the fundamentals, moat and opportunity costs.  As one of the best va...

Mohnish Pabrai is one of my favourite value investors.  He shared a relationship with Warren Buffett and Charlie Munger from Berkshire Harthaway.  $BRK.B, $BRK.A. Mohnish Pabrai Pabrai Funds portfolio as of Q4/2021 This was the collection of his 10 commandments coming to investing.  The source was  https://www.gurufocus.com/news/753022/mohnish-pabrai-talks-about-the-10-commandments-of-investing  and I have added my own thoughts in red italic fonts. Thou shall not skim off the top Pabrai thinks the fee structure in wealth and asset management is wrong. Most money managers are sinners. He takes issue with the fixed fee on assets under management. He specifically highlighted some original practitioners, Warren Buffett, who ran a 0/6/25 structure, and Munger, who ran a 0/33 type of structure. That means a 0% management fee and either 25% above a 6% hurdle or a 33% fee above a 0% hurdle. Personally, we should be rewarded with after delivered "agreed" results. There ...

We have our heroes in our lives.  For some, they could be our parents, siblings or someone in the public domain.  As an investor, I have read several materials from & about some of the top investors.  For ease of reference, let us call them " super investors ".  Heroes come in different shapes, sizes and strategies.  As (an "aspiring") value investor, it would not be surprising that I started by reading up materials on Benjamin Graham, Warren Buffett, Charlie Munger, Peter Lynch, Li Lu, Mohnish Pabrai, Nick Sleep, Guy Spier and the likes.  With heroes, it is not surprising that we will study them, watch their interviews and read their books.  For some of us, we would even consider "cloning" their portfolios.  Mohnish Pabrai admits that he is a "shameless" cloner.  For me, let us not forget to do our own due diligence before we invest .  We should not invest with the conviction of another .  Without understanding the stock, do we...

Over time, I have been introduced to value investing. Mr Warren Buffett aged 91 was my first reference. It is interesting to note that over USD$80 Billion in wealth (out of his USD$91 Billion as of late 2020) came after his mid-60s. Such is the power of compounding that Mr Charlie Munger rightfully calls   compounding the 8th wonder of the world . This has ranked Mr Buffett as one of the most successful value investors in modern times. It came as no surprise that I started to pay attention to his news article, interviews and YouTube videos. As I read up on him and studied his investment strategies, he was one who has the ability to pick up good companies at bargain (fair) prices along the way. He would spend time reading the quarterly reports of the companies that he was interested in. He would study the industry and cross-check with their competitors. While reading the quarterly reports, he was  looking out for areas of durable competitive advantage (DCA) and identified areas...