In a straightforward and accessible manner, The Dhandho Investor lays out the powerful framework of value investing. Written with the intelligent individual. The Dhandho Invester is a book which primarily focusses on the Dhandho way of running a business I.e. buy cheap and make it big. Written by. The following are my highlights from The Dhandho Investor by Mohnish Pabrai of Pabrai Funds. He’s good friends with Guy Spier, the author of.
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In a straightforward and accessible manner, The Dhandho Investor lays out the powerful framework of value investing. Written with the intelligent individual investor in mind, this comprehensive guide distills the Dhandho capital allocation framework of the business savvy Patels from India and presents how they can be applied successfully to the stock market.
The Dhandho method expands on the groundbreaking principles of value investing expounded by Benjamin Graham, Warren Buffett, and Charlie Munger.
Readers will be introduced to important value investing concepts such as “Heads, I win! Tails, I dhando lose that much! Using a light, entertaining style, Pabrai lays out the Dhandho framework in an easy-to-use format. Any investor who adopts the framework is bound to improve on results and soundly beat the markets and most professionals. Enter your mobile number or email address below and we’ll send you a link to download the free Kindle App.
Then you can start reading Kindle books on your smartphone, tablet, or computer – no Kindle device required. To get the free app, enter your unvestor phone number. All investors dhadho told that knvestor you want to earn high rates ofreturns, you must take on greater risk. Of course, thegroundbreaking dhandhi investing strategies of Benjamin Graham,Warren Buffett, and Charlie Munger have shown that it is indeedpossible to keep risk to a minimum while still making a reasonableprofit.
The Dhandho method takes their successful approach toinvesting one step further and shows how you can actually maximizerewards while minimizing risk. Dhandho pronounced dhun-doeliterally translated, means”endeavors that create wealth.
The Dhandho Investor: The Low-Risk Value Method to High Returns by Mohnish Pabrai
The Patels, a small ethnic group from India, first beganarriving in the United States in the s as refugees with littleeducation or capital. How did this small,impoverished group come out of nowhere and end up accumulating suchvast resources? The answer lies in their low-risk, high-returnapproach to business: This book will show you how to usethat same technique to invesor high returns in the stockmarket.
In this book, Pabrai distills the methods of Buffett,Graham, and Munger into a user-friendly approach applicable toindividual investors. Pabrai also details each deceptively simple Dhandho concept in astraightforward, entertaining fashion, with individual chaptersthat explain why you should: Would you ijvestor to tell us about a lower price?
A comprehensive value investing framework for the individual investor In a straightforward and accessible manner, The Dhandho Investor lays out the powerful framework of value investing.
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Customers who bought this item also investod. Page 1 of 1 Start over Page 1 of 1. The Education of a Value Investor: Berkshire Hathaway Letters to Shareholders, Editorial Reviews Review “Today’s greatest rising investor”–Motley Fool “How to invest the way an Indian migrant with little money woulddo – by looking for companies with little downside…” Financial TimesTues 26th February.
See all Editorial Reviews. Product details File Size: Wiley; 1 edition May 18, Publication Date: May 18, Sold by: Share your thoughts with other customers. Write a customer review. See all customer images. Read reviews that mention value investing kelly formula dhandho investor low risk heads i win win or tails warren buffett tails i just lose stock market warren buffet lose much case studies easy read value investor highly recommend highly recommended mohnish pabrai read this book risk dhansho phil town.
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Pabrai has written a great book for value investors. In this book, he goes through several examples of his investment strategy dhandhho includes finding stocks where if you are wrong you don’t lose much and if you are right you win big, very big. He tends to make large and infrequent bets. Similar to Buffett he waits for the big fat pitches to come along and then swings for the fences with sizable bets on them. If you have studied Buffett and Munger you will find a lot of his investment philosophy familiar of course but it is a good refresher and Pabrai communicates these principles well.
I found the book an easy read and enjoyable. Other investment books sometimes I have to force myself to push through them but Dhandho was a breeze. One big thing I learned from Pabrai that I either never picked up or internalized properly was the idea of making big bets. Over the years if I had a high conviction stock I would make an equal size bet on it. I might hold 30 to 50 stocks that make up the bulk of my portfolio.
If one got too big I’d pare it down if my conviction on it was lower in order to keep diversification and lower overall risk. In hindsight, this was likely a mistake on my part. Pabrai introduced me to the “Kelly Formula” which is a betting formula that gives you an idea of how big a bet you might want to make on a particular investment. Incestor a result, I watched some higher conviction positions become multi-baggers over the years that would have had a higher impact on the portfolio had I simply bought more.
Of course, everyone says “I should have bought more of “xyz” but I look back and know there were some safe stocks I bought to be diversified with low risk and others that I had a higher conviction on that also came without undue risk. I simply did not apply the formula and bet as big as I should have. I highly recommend this book to any investor and especially value investors. I wish it was written a decade ago or more and that I had found it.
I’m sure with the knowledge I have gained from Dhando Investor I would have mostly likely beaten the markets by an even larger percentage. A good book, however I would have liked it if he explained his method of analyzing stocks more clearly. This is more of a general approach to stocks. Don’t get me wrong, there is key information here that tells you how to find and analyze worthy stocks.
There’s a better book out there by Kenneth J Marshall, Shandho Stocks Cheap if you want to learn a solid method of value investing. I am writing this review as an expression of gratitude to Monish Pabrai for writing this excellent and informative book. It is subject to only a slow rate of change. It is distressed in a distressed industry. And, it has a durable moat.
The DI wants to buy this business on sale, specifically half-off. Pabrai explains that Wall Street is confused by the difference between risk dhahdho uncertainty. He explains that the DI wants a low risk, high invesgor business. Pabrai offers extensive illustrations using the Patels, whose heritage was from Gujarat India, dhandhho who had migrated to and succeeded in Uganda, only to be expelled by Idi Amin.
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Investir accomplished this feat using the principles of the DI. How does one find such a business? Pabrai gives specific recommendations for places to search for distressed companies. In “Payback Time” he goes into further detail explaining how to improve your returns. In conclusion, thank you Monish!
Kindle Edition Verified Purchase. I very much like the examples in the book and that anybody can understand it. I am new to investing and it got me curious to learn more.
The methods make sense and involve a large effort on your part to actually become a good investor. It tells you what not to do and helps guide you on where you should get started to learn what you need to do. It is a big picture view on a style of investing that seems to be successful.
Hopefully it will help me avoid major pitfalls and allow me to make wise, well thought out investment decisions. One person found this helpful.
I really liked this book. Buying low priced, sometimes distressed assets can be hard to do because it seems counterintuitive. But of course it’s exactly the right thing to do.
This book gives a lot of ways to do that. I definitely recommend for anyone who does their own investing. If you want to understand how to truly make money in the markets, this book is a must read.
More than trading or buying stocks, this book will give you the point of dhanhdo and the attitude you need to have if you want to succeed. I’m going back for m second read with a highlighter See all reviews.
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