Sunday 17 August 2014

Dalal Street: Mohnish Pabrai Q2 2014

Dalal Street, Mohnish Pabrai

Mr. Pabrai decided once again that it was high time to bring in another company into his portfolio and this time he decided to step into Korea and a very special steel company there...

The new investment was:

POSCO - A Korean steel producer that start up business in the 60´s. Today they are one of the few steel companies that are still making a profit. For more information please see analysis of Posco.

If you want to take a look at the previous summary then please see Dalal Street: Mohnish Pabrai Q1 2014.

Conclusion: Not only did he buy Berkshire last quarter but this quarter he also bought a holding that Berkshire have had and probably still do have. The reason for why I say "do have" is due to the issue that there is no requirement according to SEC to file international ownership and for that reason Berkshire does not show their international holdings. However every international holding above 1 billion USD is being reported in the Berkshire letters and 2013 POSCO was no longer included which was either due to the 1 billion limit or because it was sold... Either way Mr. Pabrai started a holding in it. He also decided to decrease his holding in Chesapeake Energy so according to him the fair value must have been reached in that holding.

Additional comment: I decided to make an analysis of Posco that will arrive shortly and there in their annual report from 2013 they mentioned every shareholder above 2% and Berkshire and Warren is not in there (they used to have around 5%). I therefore now draw the conclusion that Berkshire walked out on the investment or have significantly decreased it.

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