Mohnish Pabrais positions

[Okonomen]

Hi,

 

As far as I remember, one of Pabrais main points in his book The Dhando Investor is to look for companies in industries with very slow rate of change. Can anyone then explain to me why he's heavily invested in Micron and GrafTec? Sure the industries are cyclical but perhaps haven't changed that much through time, but nevertheless it's not exactly slow rate of change for Micron whose products need constant heavy R&D investments

[Orchard]

Probably because in these cases he felt it was worth the risk?

[Jurgis]

IMO Mohnish's investment approach constantly changes. A lot of what he says/said it not necessarily what you see in his holdings/investments.

 

You can take this as positive or negative (<-- there have been enough threads about Mohnish on CoBF and there's likely no need to rehash them).

[compounding]

Sometimes twelve years go by and people change their view on one or two things. It’s rare—but it happens.

[EricSchleien]

Hi,

 

As far as I remember, one of Pabrais main points in his book The Dhando Investor is to look for companies in industries with very slow rate of change. Can anyone then explain to me why he's heavily invested in Micron and GrafTec? Sure the industries are cyclical but perhaps haven't changed that much through time, but nevertheless it's not exactly slow rate of change for Micron whose products need constant heavy R&D investments

 

with micron has to do with fundamental changes in that industry to less cyclicality/commodity like returns + low multiple to earnings

graftech - contracts in place to make market cap back in cash over next 5 years