Pabrai 13F 9/30/12

[Grenville]

http://www.sec.gov/Archives/edgar/data/1549575/000154692712000070/dalal13f9302012v3.txt

 

Holdings:

BAC

C

CHK

GM

GS

ZINC

[FrankArabia]

are all the 13Fs filed already?

[Yours Truly]

interesting porfolio of financials and commodity type companies.. looks like he's going back to his old ways of heavy concentrating with the use of the kelly formula?

 

It's probably only a slice out of his total AUM too?

[Ross812]

Compared to 30 June 2012:

 

BAC - Bank of America Corp. 7,502,000 7,502,000        0%

C - Citigroup Inc.                        1,807,510 1,807,000      ~0%

GS - Goldman Sachs Group 506,130 198,863       -61%

GM - General Motors 2,237,000 2,283,650      +2%

CHK - Chesapeake Energy 1,005,000 2,983,817  +196%

ZINC - Horsehead Holding Corp. 1,840,100 1,840,100        0%

[petey2720]

I'm sure this was discussed in a prior thread, but I'm gonna bring it up again anyway.  Why did Mohnish sell WFC?  I don't get it.  I was at the meeting this year and I'm prettty sure he said his cost basis was around $10.00 per share.  He sold sometime in the first quarter between $27 - $34.  For a guy who answers every question at his meeting with Buffett says this or Munger says that, I am just surprised he doesn't take a page out of their book.  The dividend is $0.88 which translates to an 8.80% yield on the original investment of about $14m.....meaning $1.2m in dividends annually......and the dividend will only rise from here and at some point Wells will begin to repurchase their own shares.  Maybe I'm missing something and someone can explain.  By the way, please note that I am a big fan of Mohnish's and have been going to his meeting for years. 

[benhacker]

The dividend is $0.88 which translates to an 8.80% yield on the original investment of about $14m

 

Do you think that his original cost factored into his decision to sell?  Should it (other than for tax reasons)?  Why?

 

I ask only because the valuation (and thus forward returns) of a business are totally irrelevant to the price you paid.  Thinking about your cost on an investment leads to almost completely bad things in my experience.  Taxes need to be considered, but only taxes.  Expressing yield on cost is a nice way to feel good about a successful investment, but it's irrelevant.

 

Ben

[mysticdrew]

interesting porfolio of financials and commodity type companies.. looks like he's going back to his old ways of heavy concentrating with the use of the kelly formula?

 

 

Yep, he's mentioned it a few times that he's going back to a more concentrated allocation.  He gathered the real lesson to be learned from the drop in 2008 wasn't more diversification but rather keeping more cash instead.