Photo: Jon Carrasco / CC BY-SA
Ray Dalio, Bill Miller, Warren Buffett, Charlie Munger, Mohnish Pabrai, just to name a few…
As Pabrai likes to say, “There are so many good ideas around. You don’t need to create your own ideas – you can clone them.”
After discovering the power of value investing from Ben Graham and Warren Buffett back in 1999, Pabrai famously sent a letter to Buffett asking if he could work for his company, Berkshire Hathaway (NYSE: BRK.A), for free.
That’s how much value Pabrai thought he could get working under the “Oracle of Omaha.”
Buffett, although very appreciative of his offer, ultimately declined Pabrai’s generous invitation to work for him for free.
Why would Buffett do this? He knew Pabrai was an extremely smart guy with a $20 million IT business and the potential to be a skilled investment manager… And what’s better than getting free labor from a genuinely good person like Pabrai?
I suspect Buffett knew that Pabrai had what it takes to make it on his own. And that’s exactly what he did…
Originally a poor kid from India without a dollar to his name, Pabrai was just thankful Buffett even responded to his letter.
And because Buffett told him he believed in him, Pabrai suddenly had the sense that he could in fact make it on his own…
So, in 2000, he launched Pabrai Investment Funds and modeled the firm after Buffett’s investment partnerships.
“Heads I win [big], tails I don’t lose much,” is Pabrai’s investment motto. And it’s obvisouly working…
Between 2000 and 2018, Pabrai has realized a cumulative return of more than 900% for his investors.
Today, Pabrai Investment Funds manages about $675 million in assets.
And his net worth is over $100 million.
Sure, he’s not worth anywhere near the $71.6 billion Buffet is today.
But just by cloning Buffett’s investment model, Pabrai has made more money than he could ever need…
And in fact, that’s exactly what he does with his Dakshana Foundation.
Dakshana’s primary focus is on the 970 million people living in India’s 638,000 villages. Large swaths of India’s massive rural population live in extreme poverty and are mostly left out of the economic growth plans underway in the country…
Dakshana focuses on poverty alleviation through education. Pabrai’s non-profit alleviates poverty by identifying brilliant but impoverished teenagers and provides intensive coaching for 1-2 years for the IIT and medical entrance exams.
To date, he’s helped 5,273 students escape poverty and change their lives for the better – forever.
All of this to say… You could be Mohnish Pabrai too.
You could clone the same top investment managers and earn a $100 million net worth with patience and time.
And fortunately, now it’s easier than ever since every institutional investment manager with a portfolio worth $100 million or more is required to disclose their investments once per quarter using SEC form 13F.
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