Mohnish Pabrai’s 2019 Free Lunch Portfolio

Hedge Fund Manager Mohnish Pabrai (Dhandho Capital Management) has just released his new stock picks for his 2019 set it and forget it style portfolio. If you are looking for stock picking ideas to do some homework on, this is a great start. Otherwise, you can do like he suggests and just equal weight all 15 picks. Note: the 2018 portfolio vastly under-performed in 2018.

The New 2019 Free Lunch Portfolio

We are now ready to rebalance the Free Lunch Portfolio for 2019. Here are the constituents for the upcoming year:

Uber Cannibals (companies aggressively buying back stock)

  • Corning Inc. (GLW)
  • PulteGroup (PHM)
  • Sleep Number (SNBR)
  • Discover Financial Services (DFS)
  • Lear Corp. (LEA)

Shameless Cloning (stock ideas from hedge funds)

  • Charter Communications (CHTR) – From TCI Fund Management
  • Citi Group (C) – From ValueAct Capital
  • Micron Technology (MU) – From Appaloosa Management
  • Alphabet (GOOGL) –  From Sequoia Fund
  • Berkshire Hathaway (BRK.B) – From Markel Insurance

Spinoffs (corporate stock spinoffs)

  • Hamilton Beach Brands Holding (HBB)
  • DXC Technology (DXC)
  • Varex Imaging Corp. (VREX)
  • Hilton Grand Vacations (HGV)
  • Delphi Technologies (DLPH)

If you are a new investor to the Free Lunch Portfolio, you can just equal weight these 15 stocks (i.e., invest the same amount of money in each of these 15) in early January 2019.”

For more background on the Free Lunch Portfolio, see the Forbes articles below.

The 15-Stock ‘Free Lunch’ Portfolio

Move Over Small Dogs Of The Dow, Here Come The Uber Cannibals

Beyond Buffett: How To Build Wealth Copying 9 Other Value Stock Pickers

Spin Gold From Spinoffs: A Portfolio Of 5 Castoffs Trounces The S&P 500


Free Lunch Performance 2000 – 11/30/2017