Mohnish Pabrai’s long-only equity fund has returned a cumulative 517% net to investors vs. 43% for the S&P 500 Index since inception in 2000.  That’s outperformance of 474 percentage points or 1103 percent. 

Pabrai is a classic value investor in the tradition of Warren Buffett, Charlie Munger, Seth Klarman and Joel Greenblat. I recently had an opportunity to hear him talk and thought I’d pass along some of my bright yellow highlighting.

For Pabrai, this yellow brick road begins with Warren Buffett’s annual letters to shareholders (totaling 730 pages, now conveniently available for your  Amazon Kindle for $2.99 cheap).  From there he recommends the Buffett biographies (mentioning the ones by Lowenstein  and Schroeder...