My recent post "Here Come the Uber Cannibals!" on my blog https://bit.ly/2mPuF34
Mohnish Pabrai
Pabrai Investment Funds; Dakshana Foundation; Pabrai Wagons Fund (WAGNX; WGNIX)
I co-wrote an article in Forbes on an investment strategy called "The Uber Cannibals."
Uber Cannibals are companies that aggressively buy back their own stock. I will publish the list of the top Uber Cannibals for a particular year on my blog on March 18 each year.
If you choose to pursue the strategy of investing in Uber Cannibals, you can either start with these 2016 Uber Cannibals now and then rebalance at March 20, 2017, or wait until March 20, 2017 to start investing in the new list of 2017 Uber Cannibals then.
- The Uber Cannibals for 2016 are:AutoZone (AZO)
- Magellan Health (MGLN)
- Marriott International (MAR)
- NVR (NVR)
- Lowe’s (LOW)
This is a "set it and forget it" strategy. I'd suggest not putting more than 10% to 20% of your nest egg in this strategy. It only makes sense if you intend to follow it for at least a decade or two or longer. The ideal straetgy is in your IRA. That way, there are no realized gains to worry about.
You can view the article here:
I co-wrote the article with Yingzhuo Zhao, a talented quant at Dhandho Funds.
Enjoy!
Note, anyone who invests in any strategy needs to do their own research/due diligence and are themselves fully responsible for the outcome.