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Per the Pabrai Wagons Fund December 31, 2023 Semi-annual report:
"The Fund’s investments reflect 4 core allocations, which account for 76% of the portfolio:
1. Turkish workhorses, like Coca-Cola Icecek (a global coke bottler based in Turkey that operates in 11 countries), Anadolu Efes (Turkey’s biggest beer brand), and TAV Havalimanlari Holdings (a Turkish airport operator that operates airports in 8 countries). 2. U.S. Coal, which includes thermal and metallurgical coal plays like Consol Energy, Alpha Metallurgical Resources, Warrior Met Coal, and Arch Resources. 3. U.S. Car Dealerships, including Asbury Automotive and AutoNation. 4. North America/Europe Tech, including Microsoft, Amazon, Constellation Software, Topicus and Tiny.
A common theme among the businesses in all 4 groups is the exceptionally high quality of their underlying franchises. In addition, the first 3 buckets (Turkey, Coal, Car Dealerships) represent corners of the market that are deeply out of favor. The unloved status of theseindustries has resulted in their businesses being seriously mispriced by the market. We love the unloved and are excited to “circle the wagons” around these 3 buckets."
A Podcast made by NotebookLM based on this article:
NotebookLM is a Google Tool. I submitted the web link of my MFO article and the audio file of the zoom interview with Pabrai. This is the link to the audio podcast. It's 14 minutes long. I don't endorse this podcast. I am showing this to reflect the growth in AI but also to offer a different alternative to MFO readers. Maybe we can have a group of MFO listeners. (the podcast is pretty decent by the way and easy on the ears).
Thanks Devo for the link, interesting fund, like the philosophy, would prefer a lower ER but that may come down with time, also would prefer to see more of a team approach but I suspect Pabrai enjoys doing this and will be around for quite a well, like Warren, thanks again for all your comments everyone
I see many ideas as special situations. For example, several coal companies went bankrupt and provided good speculative opportunities when they came out of bankruptcy. This has nothing to with the fact that coal is a dying industry in the Western World, but not so for many EMs.
So, look at WAGNX / WGNIX as collection of special ideas that will change in future. And as MP said the objective is to beat SP500 but maybe with higher volatility.
Inflows have been strong for this new fund (investor class WAGNX).
Comments
Per the Pabrai Wagons Fund December 31, 2023 Semi-annual report:
"The Fund’s investments reflect 4 core allocations, which account for 76% of the
portfolio:
1. Turkish workhorses, like Coca-Cola Icecek (a global coke bottler based in Turkey that operates in 11 countries), Anadolu Efes (Turkey’s biggest beer brand), and TAV Havalimanlari Holdings (a Turkish airport operator that operates airports in 8 countries).
2. U.S. Coal, which includes thermal and metallurgical coal plays like Consol Energy, Alpha Metallurgical Resources, Warrior Met Coal, and Arch Resources.
3. U.S. Car Dealerships, including Asbury Automotive and AutoNation.
4. North America/Europe Tech, including Microsoft, Amazon, Constellation Software, Topicus and Tiny.
A common theme among the businesses in all 4 groups is the exceptionally high quality of their underlying franchises. In addition, the first 3 buckets (Turkey, Coal, Car Dealerships) represent corners of the market that are deeply out of favor. The unloved status of theseindustries has resulted in their businesses being seriously mispriced by the market. We love the unloved and are excited to “circle the wagons” around these 3 buckets."
Consol Energy is up 60% in the last year although down YTD
TUR the Turkey ETF is up 42% in last year
I wouldn't bet on the long-term viability of coal.
I don't think the demographic trends are so great for those Turkish consumer-oriented companies.
So I don't see those choices as forever bets however cheap they may be.
If it's available in my taxable account I might buy a little just for fun, depending on the minimum investment.
NotebookLM is a Google Tool. I submitted the web link of my MFO article and the audio file of the zoom interview with Pabrai. This is the link to the audio podcast. It's 14 minutes long. I don't endorse this podcast. I am showing this to reflect the growth in AI but also to offer a different alternative to MFO readers. Maybe we can have a group of MFO listeners. (the podcast is pretty decent by the way and easy on the ears).
Audio Podcast
https://notebooklm.google.com/notebook/04aec59c-cdb4-4833-b465-4871dd440d43/audio
So, look at WAGNX / WGNIX as collection of special ideas that will change in future. And as MP said the objective is to beat SP500 but maybe with higher volatility.
Inflows have been strong for this new fund (investor class WAGNX).