Rohan

What Mohnish Pabrai Didn't Know Hurt Him Badly

Sure, clearly he's had some bets go very sour over the past year. But he's forthright enough to add the disclaimer seemingly every time he talks that any stock he buys goes down 50% as soon as he's bought it. That's been his mantra for a while. So I guess the point is that this isn't exactly uncharted territory for his portfolio. I don't recall his numbers from calendar 2002, but they were pretty ugly, not too far from what he's posting right now. Following that, I believe his calendar 03 performance was north of 100%. Generally speaking I think the odds that he's "lost it" and doesn't bounce back from this are exceedingly low.

While the subprime fiasco was foreseen by many, an all-out stoppage of the securitization markets was even still in the midst of it all a rather low-probability event that took down DFC. Who knows...lots of heretofore unprecedented events taking portfolios down these days, perhaps there is indeed more to come.