Stockpickr: Another Buffett Wannabe

On Monday, I wrote the first in a series of columns on Warren Buffett's search for a new apprentice, starting off with Ken Shubin Stein of hedge fund Spencer Capital.

Today I'm going to posit that hedge fund manager Mohnish Pabrai, who runs Pabrai Investments, would also be an excellent choice as the next Warren Buffett. Pabrai has very focused holdings; you can check out his Stockpickr portfolio here.

Mohnish started and sold a software company in the 1990s and then became enraptured with value investing. He started his fund in early 2000 and has been running it since then with 20%-plus returns per year.

I profiled and interviewed Mohnish for my book Trade Like Warren Buffett. Pabrai structured his hedge fund exactly like the original Buffett partnership of the 1950s and '60s. Basically, there is no management fee and a 6% hurdle before a 20% performance fee is collected. ...