This is the Q3 portfolio update of Mohnish Pabrai, who has been talking a lot about checklist lately. Interestingly, his just bought a Warren Buffett stock: Posco.
After the experience of deep loss in 2008, Mohnish Pabrai increased the number of stocks in his portfolio. Also he is more relying on checklists to mitigate the risk in the stocks he owns.
According to the notes taken by Jacob Wolinsky on Value Investing Congress, Mohnish started building an investment checklist. He looked at mistakes Warren Buffett and Charlie Munger made and mistakes by other great value investors.
Mohnish compiled a list of 70 items two years ago. Since then Mohnish has achieved a zero error rate. However, Mohnish warns there are bound to be errors in the future.
Mohnish looked at many the great fund’s 13Fs from 2004 to see approximately what their buy price and look at their sell price. He analyzed twelve investors and came up with a list of 320 companies that these investors lost money in totaling $20 billion. He looked at why they might have bought and sold these securities.
He picked 26 of the 320 companies and looked in depth at them. He only looked at three financial companies to diversify across industries. Now Mohnish is up to 97 points in his checklist.
Mohnish Pabrai buys Posco, Terex Corp., International Coal Group Inc., Teck Cominco Ltd., sells Harvest Natural Resources Inc., Air Trans Svcs Groupinc Com, Potash Corp. Of Saskatchewan Inc., Berkshire Hathaway Inc. during the 3-months ended 09/30/2010, according to the most recent filings of his investment company, Pabrai Mohnish. As of 09/30/2010, Pabrai Mohnish owns 17 stocks with a total value of $293 million. These are the details of the buys and sells.
For the details of Mohnish Pabrai's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Mohnish+Pabrai
This is the sector weightings of his portfolio:
These are the top 5 holdings of Mohnish Pabrai
Added: Terex Corp. (TEX, Financial)
Mohnish Pabrai added to his holdings in Terex Corp. by 4.9%. His purchase prices were between $17.3 and $22.84, with an estimated average price of $20.07. The impact to his portfolio due to this purchase was 0.2%. His holdings were 556,776 shares as of 09/30/2010.
Terex Corp. is a global manufacturer of a broad range of construction and mining related capital equipment. Terex Corp. has a market cap of $2.65 billion; its shares were traded at around $24.42 with and P/S ratio of 0.66.
Added: International Coal Group Inc. (ICO, Financial)
Mohnish Pabrai added to his holdings in International Coal Group Inc. by 2.25%. His purchase prices were between $3.75 and $5.39, with an estimated average price of $4.7. The impact to his portfolio due to this purchase was 0.1%. His holdings were 2,542,470 shares as of 09/30/2010.
ICG is a producer of coal in Northern and Central Appalachia and the Illinois Basin. International Coal Group Inc. has a market cap of $1.25 billion; its shares were traded at around $6.12 with a P/E ratio of 26.61 and P/S ratio of 1.11.
New Purchase: Posco (PKX, Financial)
Mohnish Pabrai initiated holdings in Posco. His purchase prices were between $94.74 and $113.24, with an estimated average price of $106.17. The impact to his portfolio due to this purchase was 3.1%. His holdings were 79,757 shares as of 09/30/2010.
POSCO, formerly known as Pohang Iron & Steel Company Ltd. Posco has a market cap of $35.9 billion; its shares were traded at around $102.95 with a P/E ratio of 7.1 and P/S ratio of 1.23. The dividend yield of Posco stocks is 1.59%. Posco had an annual average earning growth of 16.3% over the past 10 years.
New Purchase: Teck Cominco Ltd. (TCK, Financial)
Mohnish Pabrai initiated holdings in Teck Cominco Ltd.. His purchase prices were between $29.55 and $40.56, with an estimated average price of $35.18. The impact to his portfolio due to this purchase was 0.08%. His holdings were 5,501 shares as of 09/30/2010.
Teck Resources Limited, formerly Teck Cominco Limited, is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, metallurgical coal, zinc, gold and energy. Teck Cominco Ltd. has a market cap of $28.5 billion; its shares were traded at around $49.12 with a P/E ratio of 22.85 and P/S ratio of 3.98. The dividend yield of Teck Cominco Ltd. stocks is 0.78%.
Reduced: Harvest Natural Resources Inc. (HNR, Financial)
Mohnish Pabrai reduced to his holdings in Harvest Natural Resources Inc. by 16.02%. His sale prices were between $6.54 and $10.4, with an estimated average price of $7.74. The impact to his portfolio due to this sale was -2.56%. Mohnish Pabrai still held 3,773,100 shares as of 09/30/2010.
Harvest Natural Resources, Inc. is an independent oil and gas exploration and development company with principal operations in Venezuela and Russia. Harvest Natural Resources Inc. has a market cap of $438.34 million; its shares were traded at around $13.05 with a P/E ratio of 31.07 and P/S ratio of 2421.75.
Reduced: Air Trans Svcs Groupinc Com (ATSG, Financial)
Mohnish Pabrai reduced to his holdings in Air Trans Svcs Groupinc Com by 10.51%. His sale prices were between $4.5 and $6.35, with an estimated average price of $5.13. The impact to his portfolio due to this sale was -0.92%. Mohnish Pabrai still held 3,767,010 shares as of 09/30/2010.
AIR TRANSPORT SERVICES GROUP, INC. is a provider of air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. Air Trans Svcs Groupinc Com has a market cap of $472.58 million; its shares were traded at around $7.41 with a P/E ratio of 12.35 and P/S ratio of 0.57. Air Trans Svcs Groupinc Com had an annual average earning growth of 14.1% over the past 5 years.
Reduced: Potash Corp. Of Saskatchewan Inc. (POT, Financial)
Mohnish Pabrai reduced to his holdings in Potash Corp. Of Saskatchewan Inc. by 3.24%. His sale prices were between $84.6 and $150.47, with an estimated average price of $124.33. The impact to his portfolio due to this sale was -0.55%. Mohnish Pabrai still held 331,618 shares as of 09/30/2010.
Potash Corporation of Saskatchewan Inc. is the world's largest potash company, the third largest phoshate producer and the second largest nitrogen producer in the world. Potash Corp. Of Saskatchewan Inc. has a market cap of $41.5 billion; its shares were traded at around $139.91 with a P/E ratio of 27.22 and P/S ratio of 10.43. The dividend yield of Potash Corp. Of Saskatchewan Inc. stocks is 0.29%. Potash Corp. Of Saskatchewan Inc. had an annual average earning growth of 31.7% over the past 10 years. GuruFocus rated Potash Corp. Of Saskatchewan Inc. the business predictability rank of 2.5-star.
Reduced: Berkshire Hathaway Inc. (BRK.B, Financial)
Mohnish Pabrai reduced to his holdings in Berkshire Hathaway Inc. by 8.33%. His sale prices were between $76.37 and $83.54, with an estimated average price of $79.78. The impact to his portfolio due to this sale was -0.01%. Mohnish Pabrai still held 3,301 shares as of 09/30/2010.
Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities. Berkshire Hathaway Inc. has a market cap of $199.02 billion; its shares were traded at around $80.25 with a P/E ratio of 23.7 and P/S ratio of 2.2. Berkshire Hathaway Inc. had an annual average earning growth of 13.2% over the past 10 years.
After the experience of deep loss in 2008, Mohnish Pabrai increased the number of stocks in his portfolio. Also he is more relying on checklists to mitigate the risk in the stocks he owns.
According to the notes taken by Jacob Wolinsky on Value Investing Congress, Mohnish started building an investment checklist. He looked at mistakes Warren Buffett and Charlie Munger made and mistakes by other great value investors.
Mohnish compiled a list of 70 items two years ago. Since then Mohnish has achieved a zero error rate. However, Mohnish warns there are bound to be errors in the future.
Mohnish looked at many the great fund’s 13Fs from 2004 to see approximately what their buy price and look at their sell price. He analyzed twelve investors and came up with a list of 320 companies that these investors lost money in totaling $20 billion. He looked at why they might have bought and sold these securities.
He picked 26 of the 320 companies and looked in depth at them. He only looked at three financial companies to diversify across industries. Now Mohnish is up to 97 points in his checklist.
Mohnish Pabrai buys Posco, Terex Corp., International Coal Group Inc., Teck Cominco Ltd., sells Harvest Natural Resources Inc., Air Trans Svcs Groupinc Com, Potash Corp. Of Saskatchewan Inc., Berkshire Hathaway Inc. during the 3-months ended 09/30/2010, according to the most recent filings of his investment company, Pabrai Mohnish. As of 09/30/2010, Pabrai Mohnish owns 17 stocks with a total value of $293 million. These are the details of the buys and sells.
For the details of Mohnish Pabrai's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Mohnish+Pabrai
This is the sector weightings of his portfolio:
| Financials | 32.6% |
| Basic Materials | 28.7% |
| Oil & Gas | 13.4% |
| Industrials | 12.2% |
| Consumer Goods | 9.4% |
| Consumer Services | 3.7% |
These are the top 5 holdings of Mohnish Pabrai
- Potash Corp. Of Saskatchewan Inc. (POT) - 331,618 shares, 16.3% of the total portfolio. Shares reduced by 3.24%
- Harvest Natural Resources Inc. (HNR) - 3,773,100 shares, 13.42% of the total portfolio. Shares reduced by 16.02%
- Brookfield Properties Corp. (BPO) - 2,359,266 shares, 12.54% of the total portfolio.
- Cresud S.A.C.I.F. Y A. (CRESY) - 1,719,377 shares, 9.41% of the total portfolio.
- AIR TRANS SVCS GROUPINC COM (ATSG) - 3,767,010 shares, 7.83% of the total portfolio. Shares reduced by 10.51%
Added: Terex Corp. (TEX, Financial)
Mohnish Pabrai added to his holdings in Terex Corp. by 4.9%. His purchase prices were between $17.3 and $22.84, with an estimated average price of $20.07. The impact to his portfolio due to this purchase was 0.2%. His holdings were 556,776 shares as of 09/30/2010.
Terex Corp. is a global manufacturer of a broad range of construction and mining related capital equipment. Terex Corp. has a market cap of $2.65 billion; its shares were traded at around $24.42 with and P/S ratio of 0.66.
Added: International Coal Group Inc. (ICO, Financial)
Mohnish Pabrai added to his holdings in International Coal Group Inc. by 2.25%. His purchase prices were between $3.75 and $5.39, with an estimated average price of $4.7. The impact to his portfolio due to this purchase was 0.1%. His holdings were 2,542,470 shares as of 09/30/2010.
ICG is a producer of coal in Northern and Central Appalachia and the Illinois Basin. International Coal Group Inc. has a market cap of $1.25 billion; its shares were traded at around $6.12 with a P/E ratio of 26.61 and P/S ratio of 1.11.
New Purchase: Posco (PKX, Financial)
Mohnish Pabrai initiated holdings in Posco. His purchase prices were between $94.74 and $113.24, with an estimated average price of $106.17. The impact to his portfolio due to this purchase was 3.1%. His holdings were 79,757 shares as of 09/30/2010.
POSCO, formerly known as Pohang Iron & Steel Company Ltd. Posco has a market cap of $35.9 billion; its shares were traded at around $102.95 with a P/E ratio of 7.1 and P/S ratio of 1.23. The dividend yield of Posco stocks is 1.59%. Posco had an annual average earning growth of 16.3% over the past 10 years.
New Purchase: Teck Cominco Ltd. (TCK, Financial)
Mohnish Pabrai initiated holdings in Teck Cominco Ltd.. His purchase prices were between $29.55 and $40.56, with an estimated average price of $35.18. The impact to his portfolio due to this purchase was 0.08%. His holdings were 5,501 shares as of 09/30/2010.
Teck Resources Limited, formerly Teck Cominco Limited, is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, metallurgical coal, zinc, gold and energy. Teck Cominco Ltd. has a market cap of $28.5 billion; its shares were traded at around $49.12 with a P/E ratio of 22.85 and P/S ratio of 3.98. The dividend yield of Teck Cominco Ltd. stocks is 0.78%.
Reduced: Harvest Natural Resources Inc. (HNR, Financial)
Mohnish Pabrai reduced to his holdings in Harvest Natural Resources Inc. by 16.02%. His sale prices were between $6.54 and $10.4, with an estimated average price of $7.74. The impact to his portfolio due to this sale was -2.56%. Mohnish Pabrai still held 3,773,100 shares as of 09/30/2010.
Harvest Natural Resources, Inc. is an independent oil and gas exploration and development company with principal operations in Venezuela and Russia. Harvest Natural Resources Inc. has a market cap of $438.34 million; its shares were traded at around $13.05 with a P/E ratio of 31.07 and P/S ratio of 2421.75.
Reduced: Air Trans Svcs Groupinc Com (ATSG, Financial)
Mohnish Pabrai reduced to his holdings in Air Trans Svcs Groupinc Com by 10.51%. His sale prices were between $4.5 and $6.35, with an estimated average price of $5.13. The impact to his portfolio due to this sale was -0.92%. Mohnish Pabrai still held 3,767,010 shares as of 09/30/2010.
AIR TRANSPORT SERVICES GROUP, INC. is a provider of air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. Air Trans Svcs Groupinc Com has a market cap of $472.58 million; its shares were traded at around $7.41 with a P/E ratio of 12.35 and P/S ratio of 0.57. Air Trans Svcs Groupinc Com had an annual average earning growth of 14.1% over the past 5 years.
Reduced: Potash Corp. Of Saskatchewan Inc. (POT, Financial)
Mohnish Pabrai reduced to his holdings in Potash Corp. Of Saskatchewan Inc. by 3.24%. His sale prices were between $84.6 and $150.47, with an estimated average price of $124.33. The impact to his portfolio due to this sale was -0.55%. Mohnish Pabrai still held 331,618 shares as of 09/30/2010.
Potash Corporation of Saskatchewan Inc. is the world's largest potash company, the third largest phoshate producer and the second largest nitrogen producer in the world. Potash Corp. Of Saskatchewan Inc. has a market cap of $41.5 billion; its shares were traded at around $139.91 with a P/E ratio of 27.22 and P/S ratio of 10.43. The dividend yield of Potash Corp. Of Saskatchewan Inc. stocks is 0.29%. Potash Corp. Of Saskatchewan Inc. had an annual average earning growth of 31.7% over the past 10 years. GuruFocus rated Potash Corp. Of Saskatchewan Inc. the business predictability rank of 2.5-star.
Reduced: Berkshire Hathaway Inc. (BRK.B, Financial)
Mohnish Pabrai reduced to his holdings in Berkshire Hathaway Inc. by 8.33%. His sale prices were between $76.37 and $83.54, with an estimated average price of $79.78. The impact to his portfolio due to this sale was -0.01%. Mohnish Pabrai still held 3,301 shares as of 09/30/2010.
Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities. Berkshire Hathaway Inc. has a market cap of $199.02 billion; its shares were traded at around $80.25 with a P/E ratio of 23.7 and P/S ratio of 2.2. Berkshire Hathaway Inc. had an annual average earning growth of 13.2% over the past 10 years.
