cubsfan Posted August 1, 2017 Share Posted August 1, 2017 For anyone attending the Chicago meeting on Saturday Sept 15th - Packer and I are setting up a lunch at 1:15. So far, it's just Packer and myself - but we generally end up with 12 to 20 - and have some great discussions until we leave for the Dhando Holdings meeting around 3:15. A chance to meet some great CoFB minds AND see memorabilia from Harry Caray and the World Series Champion Chicago Cubs! Come early, and buy a Cubs hat for the kids! Location: Harry Caray’s Italian Steakhouse, Rosemont 10233 West Higgins Road Rosemont, IL 60018 Phone: 847.699.1200 At some point, PM me if you plan to attend. Will change reservation number as needed. Harry Caray's is very close to O'hare and also the Pabrai meeting. Look forward to meeting you. Mike (Cubsfan) PS - no political discussions allowed, lest we end up in a food fight! Link to comment Share on other sites More sharing options...
arcticfox Posted August 2, 2017 Share Posted August 2, 2017 How does one attend the meeting if they are not a limited partner of Pabrai Funds. If they allow outside guests than I would be interested in attending both the Pabrai meeting and the meet up. Any insight would be appreciated. Thank you Link to comment Share on other sites More sharing options...
cubsfan Posted August 3, 2017 Author Share Posted August 3, 2017 The outside guests are really up to Monish, as they have restrictions imposed on them. I think your option is to contact and have that discussion. Link to comment Share on other sites More sharing options...
Wabash02 Posted September 11, 2017 Share Posted September 11, 2017 Hey Mike, I will be with a +1 for the lunch Saturday. Excited to see you and Keith again (we met 2 years ago at the lunch/meeting I believe). Best, Jim Link to comment Share on other sites More sharing options...
cubsfan Posted September 11, 2017 Author Share Posted September 11, 2017 Excellent - thank you Jim Mike Link to comment Share on other sites More sharing options...
AJB96 Posted September 13, 2017 Share Posted September 13, 2017 Mike, You can add me as an RSVP for the lunch. Thanks for setting this up. Alex Link to comment Share on other sites More sharing options...
cubsfan Posted September 14, 2017 Author Share Posted September 14, 2017 Absolutely Alex - looking forward to Saturday! Mike Link to comment Share on other sites More sharing options...
cubsfan Posted September 15, 2017 Author Share Posted September 15, 2017 See you all on tomorrow anytime after 1:00 - looks like we have 8 people at this point. Plenty of room - feel free to bring your friends! Mike & Keith For anyone attending the Chicago meeting on Saturday Sept 16th - Packer and I are setting up a lunch at 1:00. So far, it's just Packer and myself - but we generally end up with 12 to 20 - and have some great discussions until we leave for the Dhando Holdings meeting around 3:15. A chance to meet some great minds AND see memorabilia from the FINALLY World Series Champion Chicago Cubs! Come early, and buy a Cubs hat for the kids! Location: Harry Caray’s Italian Steakhouse, Rosemont 10233 West Higgins Road Rosemont, IL 60018 Phone: 847.699.1200 At some point, PM me if you plan to attend. Will change reservation number as needed. Harry Caray's is very close to O'hare and also the Pabrai meeting. Look forward to meeting you. Mike (Cubsfan) Link to comment Share on other sites More sharing options...
beaufort Posted September 17, 2017 Share Posted September 17, 2017 Would somebody post notes on the meeting for those of us who were not able to attend? Link to comment Share on other sites More sharing options...
nikhil25 Posted September 25, 2017 Share Posted September 25, 2017 Would somebody post notes on the meeting for those of us who were not able to attend? +1 would highly appreciate someone sharing notes from the meeting! Link to comment Share on other sites More sharing options...
Parsad Posted October 12, 2017 Share Posted October 12, 2017 Thanks to Rahul for the notes! Cheers! Sept 16 2017. PIF2 => 18.5 years $100K => $1.2M (rolled up). As of June 30 2017. Including recent months it is probably near $1.4M First 8 years => 30% annualized after fees (outperformance of about 27%). 2008 => 44% drawdown for SP and 65% drawdown for PF Next 8 years => 19% annualized. $1 is now anbout $13.6 to about $14+ PIF2 has earned no fees since 2007 10.25 years with NO fees Longest of any fund he is aware of Carried about $500K+ per year for 10 years ($5M) All three funds are now in fee earning territory $18.5 NAV in 2009 => Now it is $94. PIF3 every dollar from 2002 is now about $4 12.5% annualized Vs 9.2% annualized for the NASDAQ PIF4 => started in 2003 (every dollar is now worth about $3 (and now close to $3.6). Life of the fund is about 8.4% vs. best index is about 10.7% PIF3 is up about 48% till end of August 28% for first two funds vs. 20% for PIF4 GM, Google, Southwest GM is sold out! As of last Friday Google and Southwest combined is about 12% of the pie $680M in AUM 28% of the fund is now in India 4000 companies have market caps over (most are under $1B) $1.3B 8% annual GDP Growth 2% India are credit card holders and own a car Only 6% of people hav private health insurance India's mortgage 8% of GDP Ultra low expense => 6 basis points Amongst the lowest across the entire fund industry $580M July 1 => and now near $680M ALL funds are closed (no new capital) 85% of mutual funds law SP 0.5% of mutual funds beat the S&P by over 3% If 2 and 20 Then $12M a year Pabrai is the largest investor High Water Marks No Leverage, No margin loans, no short positions Stable group of 365 families WORLDWIDE Seritage Growth Properties Sears Bankruptcy within 3 years could be a problem Had a better idea for capital in India Made the swap at a slight realized gain. $70M info FIAT 2012 => 13.8M shares at $5 If they had done nothing would be worth $387M 1M shares of Ferrari to meet the $100M in 2016 Sold some to buy Southwest Airlines and Indian Those have done well but Ferrari has done better PIF2 has 150K shares and 250K shares 10% of each fund (not a bad stake) Ferrari is a very united asset with incredible MOAT No plans to sell another share for several years => Sergio is likely to increase intrinsic value over decades 50% in fcau 50% in obscure Indian company GM Warrants $33M realized gains. Nothing like Fiat Chrysler Unrealized gains of $14M => but looks like Pabrai exited this past week Dhando Holdings $10 NAV (current NAV) Starting Dhando Holdings was a mistake If he new in 2013 what he knows in 2017 => I would not have created it Horsehead + Stonetrust + other losses Now back at breakeven. STONE TRUST => $33.5M Purchase Price PLUS $30M capital Total cost $63.5M => Decided to sell it (last stages of deal) Hope to get back what we invested into StoneTrust => will make about 5% gain SOme Seller Financing warranties 87% of purchase price by q2 in 2018 Will then receive 3% per year for the next 4 years. Basically selling at a loss (95 cents on the dollar) New StoneTrust CEO => Mike Dileo => Doing a great job. Running the business as if no sale. Investment Portfolio $23M in gains on $50M of book value Underwriting and new business is very competitive Electing to shrink business vs. adding marginal business. SAYS IT WAS A BIG MISTAKE Investors will be left with ownership stake and Dhando Funds Junoon and India Zero Fee Funds Upside without downside Those who want to complete exit andludding an exit from stake in Dhando funds LLC (will likely be able to do as well). India Zero Fee Funds Oct 1 Launch $1M minimum $10M initial commitment Funds managed by Pabrai 2/3 of assets in Indian stocks and 1/3 other Dhando Junoon up about 15.6% while SP is at 17.4% Fahad - Analyst (Junoon Algorothim) ============== Q&A Why was Dhando a mistake -> hard to compete against large PE Firms and Succesful large scale insurance companies Company has to maintain strong financial strength Insurance is a VERY tough business! Doesn't want to get back into this space. $1B fund => CostCo AMZN Berkshire Assume the company never grows (wants to keep them) and could do an DCF. VERY few people comparison shop How much could he raise the price (probably 20%) VERY few people have used Google Express NO competition for AMZN => worth Billions of dollars if he wanted to raise price. According to Nick Sleep => amzn is SUPER cheap. Don't sell the compounders when they are overpriced (only when it its Crazy Priced). AERCAP is a aircraft leasing business => airlines (running them is a hard business). Cost of Capital is VERY expensive. They play middle man to help airlines get better deals on licensing and leasing deals. StoneTrust 85% combined ratio 95% is the best you can get and try to make profits on the float 5 or 6 year period (Workers Comp is a great business). Competition builds up the margins get to fat. Link to comment Share on other sites More sharing options...
crastogi Posted October 12, 2017 Share Posted October 12, 2017 Thanks to Rahul for the notes! Cheers! Sept 16 2017. Google and Southwest combined is about 12% of the pie $680M in AUM 28% of the fund is now in India >>>>> What about the rest of 60% of capital deployed - any hints? India Zero Fee Funds Oct 1 Launch $1M minimum $10M initial commitment Funds managed by Pabrai 2/3 of assets in Indian stocks and 1/3 other Dhando Junoon up about 15.6% while SP is at 17.4% Fahad - Analyst (Junoon Algorothim) ============== Q&A Why was Dhando a mistake -> hard to compete against large PE Firms and Succesful large scale insurance companies Company has to maintain strong financial strength Insurance is a VERY tough business! Doesn't want to get back into this space. $1B fund => CostCo AMZN Berkshire - CAN you please shed some light on this question? and the Assume the company never grows (wants to keep them) and could do an DCF. VERY few people comparison shop How much could he raise the price (probably 20%) VERY few people have used Google Express NO competition for AMZN => worth Billions of dollars if he wanted to raise price. According to Nick Sleep => amzn is SUPER cheap. Don't sell the compounders when they are overpriced (only when it its Crazy Priced). AERCAP is a aircraft leasing business => airlines (running them is a hard business). Cost of Capital is VERY expensive. They play middle man to help airlines get better deals on licensing and leasing deals. StoneTrust 85% combined ratio 95% is the best you can get and try to make profits on the float 5 or 6 year period (Workers Comp is a great business). Competition builds up the margins get to fat. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now