by Shai Angel
Monish Pabrai, a world-renowned investor, specified in one of his interviews at the beginning of his investment career that he is a shameless cloner. In other words, being a shameless cloner means that you mimic the actions of well-known investors when you follow their investment activities.
One can shy away from this pair of words, which may imply something negative but the contrary. Why not imitate the investment activities of well-known investors when you have unrestricted access to their investment information and can monitor and follow their portfolio activity?
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In his book, “The Dhando Investor” Monish Pabrai specifies that being a shameless cloner at the beginning of his investment career and even later, helped him allocate some of his best investments. Additionally, well-known investors keep tabs on each other’s investing endeavors and exchange investment concepts.
In 2007, investors Guy Spier (Manager of the Aquamarine fund) and Monish Pabrai paid $650,000 for a single lunch with Warren Buffet. This was a part of the yearly Glide Foundation charity auction, which raises money to assist the homeless and underprivileged in starting over. Why would they spend so much money on this launch? Later on though, they both acknowledged that it was well worth it and that they would even have been willing to pay more. During their lunch, Buffett explained in great detail how he and his longtime business partner Charlie Munger approach honesty, integrity, and truthfulness, along with their investment strategy and more.
During that launch, Charlie Munger told Monish Pabrai that he should meet Li Lu (founder and manager of Himalaya Fund) once a month. During those launches and meetings, these two great investors shared their knowledge and investment ideas. Li Lu is credited with recommending Chinese EV maker BYD to Charlie Munger and Warren Buffet, which has been an incredibly successful investment.
Imagine what a huge profit and advantage these savvy investors have while exchanging investment ideas and agendas with one another. Wouldn’t you wish to emulate their success? That’s what it means to be a “Shameless Cloner,” then. So, how do we track down the well-known investors’ portfolios worldwide? There are a few methods.
- Dataroma
A list of well-known investors worldwide is displayed on the website dataroma.com, along with information about their portfolio, including their most recent purchases and sales, holding percentage of each company, and more. You must select the individual investors you wish to monitor and continue following their investment activity as it appears on the website. Pay close attention to doing your own research and analysis.
- Sec Filings
The majority of these investors must file their yearly and quarterly financial statements. The U.S. Securities and Exchange Commission (SEC) requires institutional investment managers, including many famous investors, to file quarterly reports on their holdings using Form 13F. You can access these filings through the SEC’s EDGAR database. These financial statements detail their holding positions and investments, among other things. In addition to the numbers, you can discover important details and gain much knowledge about their investment strategy, the rationale behind their decisions to buy or sell positions, and more. It is strongly advised that you look over the financial statements of the investors you want to follow.
- Investment tracking platforms
Numerous internet resources focus on monitoring the holdings of well-known investors. Though Dataroma is one example, you can also investigate other platforms like GuruFocus, HoldingsChannel, and WhaleWisdom.
- Financial news website
The investing endeavors of renowned investors are frequently reported on financial news websites. Major financial industry investment decisions are covered in news and analysis by websites such as Bloomberg, CNBC, Reuters, and Yahoo Finance
- Personal and company website
Certain investors and their companies provide details about their investment holdings and philosophy on their official websites or blogs.
Though these sources can offer useful information, remember that it’s essential to perform in-depth research and double-check the information from several trustworthy sources. Investment portfolios are subject to frequent fluctuations, so making decisions based on up-to-date, reliable information is critical.
There is nothing wrong with being a shameless cloner when investing. Why shouldn’t we do it if the most famous investor in the world does? Especially considering how easily accessible information regarding the activities of well-known investors is. However, one must conduct their own financial analysis and not rely solely on well-known investors.
Shai Angel, CPA, the author, earned a master’s degree in law, a bachelor’s degree in accounting and economics, and a certificate in director training. He has previously held senior financial positions in well-known businesses. In his years of working in the financial industry, he has participated in the capital market and actively learned about “Value Investing” from some of the most prominent investors in the world, including Warren Buffett, Peter Linz, Monish Fabray, and others. He has also applied their investment strategies.
