Latest news with #Pabrai
The Market Online
13-06-2025
- Business
- The Market Online
Two smart-money mining stocks for polymetallic exposure
If we were to describe investment cloning, made famous by value investor Monish Pabrai, we might call it the practice of replicating the world's most distinguished capital allocators. The first step to successful cloning is to vet the investors to be copied, certifying that their decisions are trustworthy. A simple read through their track records will do. Pabrai emulates Warren Buffett, one of the greatest investors of all time, whose total return dating back to the 1960s stands at over 5.5 million per cent. The second step, as caution dictates, is to run the investment through your own due diligence process, making sure you agree with the object of your cloning rather than blindly following them, carelessly leaving your investments vulnerable to the winds of chance. In the newest edition of Stockhouse's Weekly Market Movers, I'll take a detailed look at two smart-money mining stocks, whose high-profile associations go a long way towards justifying a cloning thesis. How well with their assets and operations stand up to analysis? Let's see, shall we? Our first smart-money mining stock with strong cloning potential is Power Metallic Mines, market capitalization C$277.11 million, a Canadian explorer proving out the value of its flagship Nisk nickel-copper-gold-silver-platinum group elements project in Quebec. Under an 80 per cent option from Critical Elements Lithium (TSXV:CRE), Nisk boasts a 2023 indicated resource estimate of 41,600 tons of nickel, 22,100 tons of copper, 2,600 tons of cobalt and 132,500 ounces of palladium, collectively representing over US$1 billion in metals in the ground. The company is confident about expanding Nisk's resource across a handful of highly prospective targets – including the Lion zone, which recently yielded 12.54 meters of 10.99 per cent copper equivalent, and the Tiger zone, as recently highlighted by 14.3 meters grading 0.96 per cent copper equivalent – with a fully funded 100,000-metre program scheduled into 2026. Power Metallic's efforts are supported by a top-tier investor base, as detailed in slide 4 of its June 2025 investor presentation. This includes positions held by: Robert Friedland, founder of the C$13.52 billion Ivanhoe Mines (TSX:IVN), a major metals producer that generated US$228 million in net income in 2024, as well as the company behind the famous Voisey's Bay nickel, copper and cobalt mine in Labrador, which sold for C$4.3 billion in 1996. Rob McEwen, executive chairman and top shareholder of the C$683.4 million McEwen Mining (TSX:MUX), a global gold and silver producer, and founder of Goldcorp, a company he took from a market cap of $50 million to over $8 billion. These heavyweights join a number of institutional investors, including CVMR, as well as insider investors, including a sizeable position owned by chief executive officer, Terry Lynch, on Nisk's rapidly accelerating path to becoming Canada's next polymetallic mine. Power Metallic's most recent milestone in this direction involved the purchase of 167 square kilometres of adjoining claims from Li-FT Power (TSXV:LIFT), more than tripling Nisk's land package to 212.86 square kilometres. Lynch sat down with Stockhouse's Lyndsay Malchuk to discuss the new claims. Watch the interview here. The broader market has responded favorably to the company's value proposition, lifting Power Metallic stock (TSXV:PNPN) by 72.22 per cent year-over-year and by over 430 per cent since 2023. Globex Mining Enterprises Our second smart-money stock pick, Globex Mining Enterprises, market cap C$76.85 million, offers exposure to a large portfolio of mid-stage exploration, development and royalty properties spanning precious metals, base metals, specialty metals and minerals, as well as industrial minerals and compounds. Investors own a piece of 258 mineral assets in total, including 106 royalties and 50 historical or NI 43-101 compliant resources – up from 129 assets in 2015 and 49 in 2005 – each marked by at least one pillar on Globex's value-accretive acquisition criteria. These include: Historical or NI 43-101 resource. Drill intersections of economic interest. Past production. Mineralized showings or drill targets. Geophysical, geochemical and geological studies. Mining-friendly jurisdictions, currently concentrated in North America with a minor presence in Germany. Location on major ore structures or in mining camps with established track records. We find evidence for the success of Globex's acquisition strategy on its balance sheet and income statements. Unlike most micro-cap miners, for instance, the company is net income profitable, posting positive results under the metric in four out of the past five years. It's profitability has, in turn, allowed it to remain debt-free, quintupling its cash position over the period to about C$30 million as of Q1 2025, granting it plenty of dry powder to wait patiently and prioritize value in future acquisitions. Globex's profitable growth has afforded it an abundance of high-profile partners, whose association considerably de-risks your investment in the company's continued success. Here's a representative sample: These illustrious partners, joined by a geology-heavy management team with 12.74 per cent insider ownership, shows Globex Mining to be an all-around compelling name to capitalize on a diversity of commodity markets regardless of sentiment. Whether it's cash in the bank to buy depressed assets in down times or assets on the balance sheet to sell should animal spirits push prices beyond fair value, Globex is positioned to create shareholder value for the foreseeable future. Globex stock (TSX:GMX) has added 44.21 per cent year-over-year and 291.43 per cent since 2020, matching and outpacing gold's 45.7 per cent and 88.8 per cent efforts, respectively. Jack Stoch, Globex Mining's president and CEO, spoke with Lyndsay Malchuk about the company's recent resource upgrade at its Ironwood gold deposit in Quebec. Watch the interview here. Thanks for reading! I'll see you next week for a new edition of Stockhouse's Weekly Market Movers. Here's the most recent article, in case you missed it. Join the discussion: Find out what everybody's saying about these smart-money mining stocks on the Power Metallic Mines Inc. and Globex Mining Enterprises Inc. Bullboards and check out Stockhouse's stock forums and message boards. This is sponsored content issued on behalf of Power Metallic Mines Inc. and Globex Mining Enterprises Inc., please see full disclaimer here.
Mint
26-05-2025
- Business
- Mint
The Dhandho Investor: 5 timeless lessons from Mohnish Pabrai's low-risk investing strategy
As the Indian equity markets continue their growth journey, investors in the country are revisiting the principles of value investing amid volatile equity markets and global uncertainties. Mohnish Pabrai's iconic book, 'The Dhandho Investor' remains a favourable resource in this regard, laying down a pragmatic, low risk strategy deeply rooted in traditional Gujarati business thinking. 'Dhandho' basically signifying 'business.' The philosophy of the book focuses on minimising downside risk while ensuring that the returns potential is maximised, thus making it particularly significant to conservative long term investors. Mohnish Pabrai is an Indian American investor, author and philanthropist. He is the founder and managing partner of Pabrai Investment Funds. This fund has been modelled after Warren Buffett's partnerships and basic thesis of value investing. Known for its exceptional repute and consistent performance, Pabrai has delivered impressive returns over the years. He is also the author of this immensely admired book, 'The Dhandho Investor' which was first published in 2007 and an active contributor to education focused philanthropy. Heads I win, tails I don't lose much: Pabrai emphasises investing in stocks and opportunities where the potential of gains is significantly higher and completely outweighs the possibility of economic losses. This principle focuses on asymmetric risk reward scenarios, humble expectations and ensuring that even in the worst situations losses are minimal. Invest in understandable and simple business ideas: Complex business models i.e., business ideas that are difficult to understand should be avoided at all costs. As such ideas obscure risks. Pabrai advocates for investing in straightforward, easy to understand businesses with predictable cash flows, enabling investors to make well thought out decisions without unnecessary and avoidable complications. Focus on acquisition of solid existing businesses: Rather than going ahead with starting new ventures, Pabrai suggests investing in established business models with a proven track record of consistent performance. This approach reduces startup risks and leverages existing operational efficiencies. Seek durable competitive advantages: Pabrai suggests, as an investor you should identify businesses with sustainable competitive edges and moats. Businesses that have brand identity, network effects, cost leadership and evolved business models. So that your investments can ensure long term portability and resilience against market fluctuations and economic downturns. Purchase at a discount to intrinsic value: Echoing Benjamin Graham's concept of a 'margin of safety' Pabrai advises aspirational investors and professionals to buy stocks priced below their intrinsic value. This simple yet powerful strategy provides a buffer against unforeseen market downturns. Concentrated investing : Pabrai challenges the conventional notion of diversification. He suggests focusing on a limited number of high conviction investments. As such an approach allows for a more intense and deeper analysis and potentially higher returns. : Pabrai challenges the conventional notion of diversification. He suggests focusing on a limited number of high conviction investments. As such an approach allows for a more intense and deeper analysis and potentially higher returns. Learning from mistakes : It is equally crucial to emphasize the importance of analysing past errors. Pabrai encourages investors to learn from failures to improve and refine their investment strategies. This can go a long way in helping in avoiding repeating mistakes. : It is equally crucial to emphasize the importance of analysing past errors. Pabrai encourages investors to learn from failures to improve and refine their investment strategies. This can go a long way in helping in avoiding repeating mistakes. Arbitrage opportunities: Pabrai signifies the potential of exploiting market inefficiencies through arbitrage, thus enabling investors and boosting their potential to achieve low-risk profits by capitalising on price discrepancies. Therefore, investors and professionals navigating an increasingly complex financial landscape can refer to Pabrai's 'Dhandho' framework and learn from his time tested eternal wisdom. Hence, by staying focused on risk management, value driven investing individuals can cultivate resilient portfolios aligned with long term wealth generation. Disclaimer: The information provided in this article is for educational purposes only and does not constitute financial advice. Readers should consult a qualified financial advisor before making any investment decisions.
Yahoo
14-05-2025
- Business
- Yahoo
Mohnish Pabrai's Strategic Exit from Core Natural Resources Inc: A -25.04% Portfolio Impact
Warning! GuruFocus has detected 7 Warning Signs with HCC. Mohnish Pabrai (Trades, Portfolio) recently submitted the 13F filing for the first quarter of 2025, providing insights into his investment moves during this period. Mohnish Pabrai (Trades, Portfolio) is the Managing Partner of Pabrai Investment Funds, a group of focused value funds. Known for his value investing philosophy, Pabrai has shifted much of his focus to international markets like India, Turkey, and South Korea, where he perceives better opportunities. His U.S.-based portfolio constitutes a smaller portion of the funds total assets under management. Pabrai primarily invests in smaller, out-of-favor companies with market caps around half a billion dollars, maintaining a concentrated portfolio. Mohnish Pabrai (Trades, Portfolio) added a total of 2 stocks, among them: The most significant addition was Valaris Ltd (NYSE:VAL), with 1,427,564 shares, accounting for 23.87% of the portfolio and a total value of $56.05 million. The second largest addition to the portfolio was Noble Corp PLC (NYSE:NE), consisting of 1,728,744 shares, representing approximately 17.45% of the portfolio, with a total value of $40.97 million. Mohnish Pabrai (Trades, Portfolio) also increased stakes in a total of 1 stock, among them: The most notable increase was Warrior Met Coal Inc (NYSE:HCC), with an additional 94,910 shares, bringing the total to 1,799,580 shares. This adjustment represents a significant 5.57% increase in share count, a 1.93% impact on the current portfolio, with a total value of $85.88 million. Mohnish Pabrai (Trades, Portfolio) completely exited 1 holding in the first quarter of 2025, as detailed below: Core Natural Resources Inc (NYSE:CNR): Mohnish Pabrai (Trades, Portfolio) sold all 594,950 shares, resulting in a -25.04% impact on the portfolio. Mohnish Pabrai (Trades, Portfolio) also reduced his position in 1 stock. The most significant changes include: Reduced Alpha Metallurgical Resources Inc (NYSE:AMR) by 72,635 shares, resulting in a -14.91% decrease in shares and a -5.73% impact on the portfolio. The stock traded at an average price of $162.74 during the quarter and has returned -30.81% over the past 3 months and -36.20% year-to-date. At the first quarter of 2025, Mohnish Pabrai (Trades, Portfolio)'s portfolio included 4 stocks, with top holdings comprising 36.57% in Warrior Met Coal Inc (NYSE:HCC), 23.87% in Valaris Ltd (NYSE:VAL), 22.11% in Alpha Metallurgical Resources Inc (NYSE:AMR), and 17.45% in Noble Corp PLC (NYSE:NE). The holdings are mainly concentrated in 2 of the 11 industries: Basic Materials and Energy. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
