Mohnish Pabrai and Whitney Tilson Fall From Grace

By on March 21, 2009

Davy Bui, blogging as “The Enlightened American,” attempts to explain what went wrong with the strategies of Mohnish Pabrai and Whitney Tilson, causing their investment underperformance of late.

Tilson’s lesson? In his case, an overly strict definition of “bottoms-up” investing and inadequate consideration of macro factors (which he was correct about) in his stock-picking.

Pabrai placed too much money on too few bad bets and has now decided on less concentration in his investment choices.


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