Mohnish Pabrai bought HNR shares again, and he really bought a lot recently.
Both of us knew the recent ER was fantastic. However I couldn't hide my exhilaration and rushed to load @10. This guru investor is just so disciplined to only load it below his preset threshold which we all know now it is $10. I like his coolness.
How did he come up with the preset threshold in the first place? From reading his book, I knew his strategy. He must have done very thorough due dilligence and come up with a intrinsic value for a business, and load it when it is on fire sale, the discount rates (margin of safety) for his previous investments have been 25%-40%. So in his mind, HNR's intrinsic value is about in the range of 25-40. I certainly don't disagree with him.
Anyway it is very nice to have this guy with us in HNR.