When Mohnish Pabrai increased his bet on Delta Financial Corp. last summer, taking part in a $70 million bailout of the troubled mortgage lender, he did so thinking that Delta had a floor. “The mark-to-market value of its assets exceeded its stock price, and it had an earnings engine,” says Pabrai, a value investor who has fashioned himself after Berkshire Hathaway chairman and CEO Warren Buffett.
