Private Finance Blog

 I was just going through Mohnish Pabrai's old videos and I remember watching him talking about cloning, and tail coat investing.  Cloning is copying the business models of successful companies. An example of a great business is the Moody's, S&P ratings business. Even though they gave toxic ratings that led to the collapse of the financial system in the last financial crisis, they are still extremely profitable and growing strongly.  Cloning is looking for a similar business in another country. or another rating agency in another country. A similar company to Moody's is CRISIL, in India, which operates a ratings agency. The cost to operate a ratings agency may be just to hire some staff and they can charge a fortune to do  ratings for different companies. So there isn't a high capex requirement, like purchasing machinery and factories. Here is the latest stock chart of CRISIL, Mohnish talked about this in 2016 Here is the stock chart of Moodys. So even after iden...

I haven't really looked that deeply into this company, but it is really a case of something popping out at me as a good deal. I remember Mohnish Pabrai talking about this method of investing. You want something that really pops out at you as a great investment. An example of this may very well have been an old idea to invest into the Greek banks somewhere in the 2021's, the entire banking system in Greece was trading at less than the market capitalization of CIMB Bank (About 10billion euroes for all 4 of the systemic banks that comprised the entire banking system in Greece, post recapitalization), the economy had been showing signs of growing green shoots since the early 2017's and Piraues Bank had gone through a last recapitalization somewhere in 2022 or 2023. Piraeus Bank then saw a 4 fold increase in share price from .90 euro to somewhere around 4 euroes. I had a whole investment thesis on this that has already unfolded. I missed the boat because my funds was stuck in OM...

 I haven't been actively looking at the stock market as heavily as I have been in the past. I remember having some conversations with Paul(someone I used to talk to who has fallen off the radar, I forgot his number and can't reconnect). If I could remember some of the conversations I'd want to put in in my blog. Haha. I remember watching a video by this guy, Tom Lee from Fundstrat, who has an uncanny ability of spotting market trends, it may very well be because he seems to be perpetually bullish on the stock market. He doesn't expect the current run to end any time soon, his been on record expecting the run in some of the AI stocks to last until 2035.  There is a lot of hype surrounding AI and some of the other technology disrupting certain sectors. I think I saw a video where Jeff Bezos was talking about it, it's like a layer of technology that will apply very broadly at a thin level on everything that we will be doing. I can't really wrap my head around it, b...