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Pabrai Annual Lunch Auction


Parsad

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Only COBF members would shit on a guy for raising money to help others!  Nice!  Cheers!

 

Im just kidding... relax. Im just shocked at the prices people pay for investing advice.

 

The buyer doesn’t pay for investment advice, they pay for advertising that comes from a possible news story with him having lunch with a semi famous person.

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Only COBF members would **** on a guy for raising money to help others!  Nice!  Cheers!

 

Personally, the current bid of $17,000 is too rich for me. I don't consider myself enough of a high roller to bid on lunch with Monish. Maybe if there was an option for just coffee. Since this is supposed to be a value investor thread, I'd like to make a couple of points about what might be hidden value for some of you.

 

First, I'd like to say that I am more impressed than ever with the wisdom of what Pabrai is doing with Dakshana. If you want your dollar to go a long way then Monish has found a very positive way of impacting the world. I also want to call out some people on this board who like to complain about the injustices of Hunter Biden starting life on third base, or the inequalities that the left concerns themselves with. Well why don't you put your money where your mouth is and give some money to an organization that actually does something about that sort of issue?

 

Second, I think you could mock Pabrai for having this fundraiser and say that he is just copying Buffett. I might be tempted to do the same, but there's a problem with that. Buffett and Munger say that you can't pick and choose which parts of the system to copy. They say that if you want to adopt their system, you have to copy everything. I am guessing that Monish's interactions with Charlie, Warren and others in their universe have taught him something about that. There are too many people who say, "I'm going to be just like Buffett, except for the part about ethics" or "I'm just like Buffett, except for the part about living modestly, in fact I don't even want to live with my means, borrowing heavily to consume seems like more fun." Kudos to Monish for his efforts to copy ALL parts of the system rather than picking and choosing. It's probably better to risk being mocked for copying everything Buffett does than to leave out something important due to ignorance. It's probably also worth accidentally charging $8 dollars shipping or accidentally using your personal eBay account and exposing that your hobby is collecting beanie babies, either of which would obviously open you to ridicule.

 

Finally, since I thought we were supposed to be analysts, here's an argument that the auction presents a bargain. Even if you don't think that speaking to Monish about investing or business has value to your particular situation, Monish has had the opportunity to spend time with Buffett and Munger and has become friendly with many people who are close to them. Even if you think the only value is that maybe some pixie dust fell off on to Monish, at 37 bps relative to the cost of lunch with Buffett, maybe it's not a bad deal? Even if you thought you should make adjustments for the relative scarcity of Buffett's time versus Monish's time, or maybe adjustments for the relative AUM amounts, etc I think someone could still make arguments that the lunch is cheap on a relative basis.

 

Plus, I suspect we could learn something from Monish about marketing and self-promotion. Now Monish, I know you read CoB&F occasionally, and as a master marketer, I'm sure you check up on your online presence . . . so,  about that coffee . . . feel free to message me.

 

https://en.wikipedia.org/wiki/Glide_Foundation

 

Event number Year Winning bid (USD)

20 2019 $4.57 million[9]

19 2018 $4.23 million[11]

18 2017 $2.68 million

17 2016 $3.46 million

16 2015 $2.35 million

15 2014 $2.16 million

14 2013 $1 million

13 2012 $3.46 million

12 2011 $2.63 million

11 2010 $2.63 million

10 2009 $1.68 million

9 2008 $2.1 million

8 2007 $650,100

7 2006 $620,100

6 2005 $351,100

5 2004 $202,100

4 2003 $250,100

3 2002 $25,000

2 2001 $18,000

1 2000 $25,000

 

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Only COBF members would shit on a guy for raising money to help others!  Nice!  Cheers!

 

Im just kidding... relax. Im just shocked at the prices people pay for investing advice.

 

The buyer doesn’t pay for investment advice, they pay for advertising that comes from a possible news story with him having lunch with a semi famous person.

 

I was referring just as much to the $3,500 30 minute conference call. But to the above, I don't really think that's why people are doing this. Let's face it, Warren Buffett is known the same way Michael Jordan or Woody Allen is. Nobody outside of us investing dorks really know or think lunch with Monish Pabrai is worth paying big bucks for. You could say the same about any number of investing legends. Heck you could say it about Sanjeev too. I'd pay a few bucks to a charity for a lunch with Sanjeev. If I told the guy next to me in NJ, or even NYC, most would probably look at me like "who the f*** is that?" and then even after I explained it likely wouldn't get it.

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Only COBF members would shit on a guy for raising money to help others!  Nice!  Cheers!

 

Im just kidding... relax. Im just shocked at the prices people pay for investing advice.

 

I doubt that anyone mainly pays for an investment advice or as some one else indicated, to get their name in papers when it comes to having lunch with Pabrai.

 

Most people want to donate for a good cause when money is used wisely and if it comes with a lunch with him, it's even better. Wallet, investment etc are just bonus.

 

I will highly recommend reading Dakshana Foundation's annual report.

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Good luck bidders! Probably one of the best places to put your charity dollars.

 

Plus, take a look at Mohnish...with that belly, you know this man knows good food! I'd wager that lunch is going to be DELICIOUS!  ;D ;D

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Only COBF members would shit on a guy for raising money to help others!  Nice!  Cheers!

 

Im just kidding... relax. Im just shocked at the prices people pay for investing advice.

 

I doubt that anyone mainly pays for an investment advice or as some one else indicated, to get their name in papers when it comes to having lunch with Pabrai.

 

Most people want to donate for a good cause when money is used wisely and if it comes with a lunch with him, it's even better. Wallet, investment etc are just bonus.

 

I will highly recommend reading Dakshana Foundation's annual report.

 

Exactly right rranjan! 

 

I personally paid $21K to play a round of golf and lunch with Wayne Gretzky.  I'm not going to meet him to show off or become the next Gretzky...well past my prime, as well as my best before date!

 

I wanted to donate the money, and in turn I get to have lunch with someone I marveled at when he played hockey and as a statesman for the sport.  Certainly a better use than buying an expensive car!  Cheers!

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Only COBF members would **** on a guy for raising money to help others!  Nice!  Cheers!

 

Personally, the current bid of $17,000 is too rich for me. I don't consider myself enough of a high roller to bid on lunch with Monish. Maybe if there was an option for just coffee. Since this is supposed to be a value investor thread, I'd like to make a couple of points about what might be hidden value for some of you.

 

First, I'd like to say that I am more impressed than ever with the wisdom of what Pabrai is doing with Dakshana. If you want your dollar to go a long way then Monish has found a very positive way of impacting the world. I also want to call out some people on this board who like to complain about the injustices of Hunter Biden starting life on third base, or the inequalities that the left concerns themselves with. Well why don't you put your money where your mouth is and give some money to an organization that actually does something about that sort of issue?

 

Second, I think you could mock Pabrai for having this fundraiser and say that he is just copying Buffett. I might be tempted to do the same, but there's a problem with that. Buffett and Munger say that you can't pick and choose which parts of the system to copy. They say that if you want to adopt their system, you have to copy everything. I am guessing that Monish's interactions with Charlie, Warren and others in their universe have taught him something about that. There are too many people who say, "I'm going to be just like Buffett, except for the part about ethics" or "I'm just like Buffett, except for the part about living modestly, in fact I don't even want to live with my means, borrowing heavily to consume seems like more fun." Kudos to Monish for his efforts to copy ALL parts of the system rather than picking and choosing. It's probably better to risk being mocked for copying everything Buffett does than to leave out something important due to ignorance. It's probably also worth accidentally charging $8 dollars shipping or accidentally using your personal eBay account and exposing that your hobby is collecting beanie babies, either of which would obviously open you to ridicule.

 

Finally, since I thought we were supposed to be analysts, here's an argument that the auction presents a bargain. Even if you don't think that speaking to Monish about investing or business has value to your particular situation, Monish has had the opportunity to spend time with Buffett and Munger and has become friendly with many people who are close to them. Even if you think the only value is that maybe some pixie dust fell off on to Monish, at 37 bps relative to the cost of lunch with Buffett, maybe it's not a bad deal? Even if you thought you should make adjustments for the relative scarcity of Buffett's time versus Monish's time, or maybe adjustments for the relative AUM amounts, etc I think someone could still make arguments that the lunch is cheap on a relative basis.

 

Plus, I suspect we could learn something from Monish about marketing and self-promotion. Now Monish, I know you read CoB&F occasionally, and as a master marketer, I'm sure you check up on your online presence . . . so,  about that coffee . . . feel free to message me.

 

https://en.wikipedia.org/wiki/Glide_Foundation

 

Event number Year Winning bid (USD)

20 2019 $4.57 million[9]

19 2018 $4.23 million[11]

18 2017 $2.68 million

17 2016 $3.46 million

16 2015 $2.35 million

15 2014 $2.16 million

14 2013 $1 million

13 2012 $3.46 million

12 2011 $2.63 million

11 2010 $2.63 million

10 2009 $1.68 million

9 2008 $2.1 million

8 2007 $650,100

7 2006 $620,100

6 2005 $351,100

5 2004 $202,100

4 2003 $250,100

3 2002 $25,000

2 2001 $18,000

1 2000 $25,000

 

The first 3 guys who had lunch with Buffet between 2000 and 2002 belong in the hall of fame of value investing.  What the heck ever happen to the 2019 lunch?  Did that crypto guy ever had a steak lunch with Buffet at Smith and Wollensky?

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Only COBF members would **** on a guy for raising money to help others!  Nice!  Cheers!

 

Personally, the current bid of $17,000 is too rich for me. I don't consider myself enough of a high roller to bid on lunch with Monish. Maybe if there was an option for just coffee. Since this is supposed to be a value investor thread, I'd like to make a couple of points about what might be hidden value for some of you.

 

First, I'd like to say that I am more impressed than ever with the wisdom of what Pabrai is doing with Dakshana. If you want your dollar to go a long way then Monish has found a very positive way of impacting the world. I also want to call out some people on this board who like to complain about the injustices of Hunter Biden starting life on third base, or the inequalities that the left concerns themselves with. Well why don't you put your money where your mouth is and give some money to an organization that actually does something about that sort of issue?

 

Second, I think you could mock Pabrai for having this fundraiser and say that he is just copying Buffett. I might be tempted to do the same, but there's a problem with that. Buffett and Munger say that you can't pick and choose which parts of the system to copy. They say that if you want to adopt their system, you have to copy everything. I am guessing that Monish's interactions with Charlie, Warren and others in their universe have taught him something about that. There are too many people who say, "I'm going to be just like Buffett, except for the part about ethics" or "I'm just like Buffett, except for the part about living modestly, in fact I don't even want to live with my means, borrowing heavily to consume seems like more fun." Kudos to Monish for his efforts to copy ALL parts of the system rather than picking and choosing. It's probably better to risk being mocked for copying everything Buffett does than to leave out something important due to ignorance. It's probably also worth accidentally charging $8 dollars shipping or accidentally using your personal eBay account and exposing that your hobby is collecting beanie babies, either of which would obviously open you to ridicule.

 

Finally, since I thought we were supposed to be analysts, here's an argument that the auction presents a bargain. Even if you don't think that speaking to Monish about investing or business has value to your particular situation, Monish has had the opportunity to spend time with Buffett and Munger and has become friendly with many people who are close to them. Even if you think the only value is that maybe some pixie dust fell off on to Monish, at 37 bps relative to the cost of lunch with Buffett, maybe it's not a bad deal? Even if you thought you should make adjustments for the relative scarcity of Buffett's time versus Monish's time, or maybe adjustments for the relative AUM amounts, etc I think someone could still make arguments that the lunch is cheap on a relative basis.

 

Plus, I suspect we could learn something from Monish about marketing and self-promotion. Now Monish, I know you read CoB&F occasionally, and as a master marketer, I'm sure you check up on your online presence . . . so,  about that coffee . . . feel free to message me.

 

https://en.wikipedia.org/wiki/Glide_Foundation

 

Event number Year Winning bid (USD)

20 2019 $4.57 million[9]

19 2018 $4.23 million[11]

18 2017 $2.68 million

17 2016 $3.46 million

16 2015 $2.35 million

15 2014 $2.16 million

14 2013 $1 million

13 2012 $3.46 million

12 2011 $2.63 million

11 2010 $2.63 million

10 2009 $1.68 million

9 2008 $2.1 million

8 2007 $650,100

7 2006 $620,100

6 2005 $351,100

5 2004 $202,100

4 2003 $250,100

3 2002 $25,000

2 2001 $18,000

1 2000 $25,000

 

The first 3 guys who had lunch with Buffet between 2000 and 2002 belong in the hall of fame of value investing.  What the heck ever happen to the 2019 lunch?  Did that crypto guy ever had a steak lunch with Buffet at Smith and Wollensky?

 

Even Mohnish and Guy Spiers are at #8 and paid $650,100...a relative bargain compared to the going rate.  Better use of money than paying off people to correct your child's SAT score or get them on a rowing/swimming team at college!  :o  Cheers!

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Also for those on a tighter budget, here is the phone call/teleconference auction:

 

https://www.ebay.com/itm/123936600677?ssPageName=STRK:MESCX:IT&_trksid=p3984.m1557.l2649

 

Plenty of sizzle...no steak...literally, there's no food!  ;D  Cheers!

Just tried to bid while the price was within my wheelhouse - seems like non US people are forbidden from taking part.

 

Ships to:

United States

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I was impressed by the Dakshana foundation, until I read this in their 2018 annual report:

The $3.7 million investment loss is mostly unrealized and will likely reverse itself in the years ahead. I love Dakshana’s investment portfolio and expect robust gains in the years ahead.

 

$3.7M loss with $10.5M cash in a foundation?????

 

To be fair, the foundation made ~+$1.1M the year before, but still.

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Probably invested in the India market. Indian market wasn't doing good last year.

 

From the 2018 annual report, since the inception of the foundation, Pabrai and family had donated $27M to the foundation. That's nice.

 

--------------

 

From the outset, Harina and I committed to give 2% of our net worth to Dakshana every year as long

as our net worth exceeded $50 million at the end of any given year. When our net worth exceeded

$100 million for the first time in 2017 (yaay!), we felt it was time to go beyond the 2%. As a

result, we updated the formula to give 3% over $100 million, 4% over $150 million and 5% of

everything over $200 million. Based on this updated formula, the annual amounts we’re expected to

give and actually gave are as follows:

Page 8

Table 4. Mohnish Pabrai and Harina Kapoor – Giving Formula vs. Actual Giving

Year  Expected-To-Give Actual-Giving Difference

2006 $ 1,067,983 $ 577,420 $ (490,563)

2007 $ 1,302,924 $ 3,355,350 $ 2,052,426

2008 $ - $ 106,491 $ 106,491

2009 $ - $ 69,450 $ 69,450

2010 $ 1,168,983 $ 345,064 $ (823,919)

2011 $ - $ 1,044,480 $ 1,044,480

2012 $ 1,084,215 $ 200 $ (1,084,015)

2013 $ 1,511,701 $ 820,710 $ (690,991)

2014 $ 1,526,951 $ 3,404,487 $ 1,877,536

2015 $ 1,244,044 $ 486,660 $ (757,384)

2016 $ 1,293,438 $ 1,190,240 $ (103,193)

2017 $ 6,444,191 $ 10,569,682 $ 4,125,491

2018 $ 3,550,231 $ 5,224,000 $ 1,673,769

Total $ 20,194,662 $ 27,194,234

Excess Given: $ 6,999,572

Harina and I are amazed that we’ve been able to give over $27 million to Dakshana since inception.

 

----------------------------

 

Also, if you look at the ebay lunch winners, it's pretty much the same set of people, probably friends.

Must be doing it for a good cause, even though Pabrai gives a stock tip during the lunch.

 

-----------------

Table 6. Ebay Lunch Results – 2010 to Present

Year Winning Bid Actual Proceeds Winner

2018 $ 17,200 $ 17,200 Kailash Joshi

2017 $ 29,100 $ 30,500 Ray Faltinsky & Friends

2016 $ 14,100 $ 21,600 Josh Levy

2015 $ 72,600 $ 72,600 Josh Levy

2014 $ 36,200 $ 127,000 Ray Faltinsky & Friends, Brandon Cohen

2013 $ 17,000 $ 25,000 Narendra Mulani

2012 $ 25,000 $ 55,000 Ray Faltinsky & Friends, Narendra Mulani

2011 $ 20,300 $ 65,100 Narendra Mulani, Ray Faltinsky & Friends

2010 $ 10,000 $ 26,000 Ray Faltinsky

 

Total $ 241,500 $ 440,000

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