Pabrai’s Market Crushing Uber Cannibals Portfolio 2018

It’s that time of year again. When one of our favorite market crushing portfolio’s gets its annual update. ​​ Today that portfolio is Pabrai’s Uber Cannibals Portfolio.

This new list will represent the 2018-2019 portfolio picks, and will follow the same rules illustrated in the original Uber Cannibals post, shared by our favorite value investor; Mohnish Pabrai.

Here’s what we’ll cover today:

• The old Cannibals of 2017

• The Uber Cannibals Portfolio Performance

• The New Uber Cannibals of 2018

• How well the individual companies performed

• Further Reading

Now that we have that out of the way, let’s move onto the subject matter and see what you think.

The 2017 Cannibals

This ​​ list consisted of 5 companies:

• Lowe’s (Ticker: LOW)

• NVR (Ticker: NVR)

• Select Comfort (Ticker: SCSS)

• The Hackett Group (Ticker: HCKT)

• Willis Lease Finance (Ticker: WLFC)

Mohnish Pabrai recently released the updated list, as well as the performance of last years picks. ​​ Here’s how well it has performed thus far:

As you can see above, the Uber Cannibals Portfolio would have turned your $100,000 into over $130,000 in just over a years time. ​​ In other words, with no extra effort on your end, you would have just made $30,646. ​​ Not too shabby.

The 2018-2019 Cannibals Portfolio Picks

This year the algorithm has again followed its assigned rules and picker 5 self-eating stocks. ​​ They are:

• Corning Inc. (Ticker: GLW)

• Discover Financial Services (Ticker: DFS)

• Lear Corp. (Ticker: LEA)

• Pulte Group (Ticker: PHM)

• Sleep Number Corp. (Ticker: SNBR)

If you invested in this portfolio last year, you’ll notice that Sleep Number Corp. has made a second appearance. ​​ This means that you will leave your original investment in the company untouched, sell the other four (Hackett, Lowe’s, NVR, & Willis Lease), companies. ​​ Next, invest the proceeds equally among the four new companies on the list:

• Corning Inc. (Ticker: GLW)

• Discover Financial Services (Ticker: DFS)

• Lear Corp. (Ticker: LEA)

• Pulte Group (Ticker: PHM)

Hold for a year, or until the next list is released.

2017 Uber Cannibals Performance

Now let’s take a look at just how well Pabrai’s portfolio Performed:

In Pabrai’s Blog Post, he reminds us that if your are investing in this strategy in a taxable account, you should try and hold the winners for at least 366 days, while holding the losers for no more than 364 days. Why? To take advantage of long-term capital gains as well as short-term capital losses that exist within the US.

Therefore, with the 2017 list you would have sold The Hackett Group on or before the 364th day, and you would have held the remainder for at least 366 days (continuing to hold Sleep number into 2018).

For the full list of rules, see this post:

Mohnish Pabrai’s ‘Uber Cannibals’ Portfolio

To see the full list of the ‘Set it and forget it’ style Portfolio’s click the ‘Market Beating Portfolio’s’ tab above.

Before you go:

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