Would you like to tell us about a lower price? If you are a seller for this product, would you like to suggest updates through seller support? All investors are told that if you want to earn high rates of returns, you must take on greater risk. Of course, the groundbreaking value investing strategies of Benjamin Graham, Warren Buffett, and Charlie Munger have shown that it is indeed possible to keep risk to a minimum while still making a reasonable profit.
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Would you like to tell us about a lower price? If you are a seller for this product, would you like to suggest updates through seller support? All investors are told that if you want to earn high rates of returns, you must take on greater risk. Of course, the groundbreaking value investing strategies of Benjamin Graham, Warren Buffett, and Charlie Munger have shown that it is indeed possible to keep risk to a minimum while still making a reasonable profit. The Dhandho method takes their successful approach to investing one step further and shows how you can actually maximize rewards while minimizing risk.
Dhandho pronounced dhun-doe , literally translated, means "endeavors that create wealth. The Patels, a small ethnic group from India, first began arriving in the United States in the s as refugees with little education or capital. How did this small, impoverished group come out of nowhere and end up accumulating such vast resources? The answer lies in their low-risk, high-return approach to business: Dhandho. This book will show you how to use that same technique to generate high returns in the stock market.
In this book, Pabrai distills the methods of Buffett, Graham, and Munger into a user-friendly approach applicable to individual investors. Combining their legendary investing wisdom with the business acumen of the Patels, Pabrai lays out the Dhandho framework in an easy-to-use format that will help any investor significantly improve on their results and soundly beat the markets--as well as most professionals.
Pabrai also details each deceptively simple Dhandho concept in a straightforward, entertaining fashion, with individual chapters that explain why you should: Invest in Simple Businesses, Fixate on Arbitrage, Invest in the Copy Cats Rather than the Innovators, and other simple but proven concepts for low-risk, high-reward Dhandho investing.
Whether you're mystified by what drives stock prices up and down on Wall Street or you're sure you know, you'll understand better when you read this book. Pabrai's tales of high finance and his clever examination of the core principles of deep value are packed with handy ideas you should use in your own investing. Mohnish shares the 'secrets' of his extraordinary success and has made a significant contribution to the literature on value investing.
Everyone must understand this methodology if they are to do well in the stock market. Pabrai has simplified the strategy for successful investing. I suggest this book to anyone looking to hone their investment skills. 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.
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 dona t 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.
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From the Back Cover Praise for The Dhandho Investor "Mohnish Pabrai is a relentlessly insightful thinker who delights in decoding the esoteric world of finance and also knows how to tell a good yarn. Read more. Customers who bought this item also bought. No customer reviews. How does Amazon calculate star ratings? The machine learned model takes into account factors including: the age of a review, helpfulness votes by customers and whether the reviews are from verified purchases.
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Verified Purchase. Pabrai has written a great book for value investors. In this book, he goes through several examples of his investment strategy which 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. As 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, Good 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 simple. 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 and uncertainty. He explains that the DI wants a low risk, high uncertainty business. Pabrai offers extensive illustrations using the Patels, whose heritage was from Gujarat India, but who had migrated to and succeeded in Uganda, only to be expelled by Idi Amin.
They 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! And will be reading this book over for years to come. For anyone who really wants to become wealthy, it starts with investing. And to be a good investor it starts with learning and reading books about it. Great book about low risk high return investing.
This book is that. The author has no clue about investing Go to Amazon. Back to top. Get to Know Us. Shopbop Designer Fashion Brands. Alexa Actionable Analytics for the Web.
Mohnish Pabrai on His Book, The Dhandho Investor
Whatever you do, don't follow the investing framework laid out in this book. It will make my job as an investor that much more difficult because you'll be much more competitive. OK, that's not completely fair. After all, one of the goals at The Motley Fool is to help you become a better investor.
Foolish Book Review: "The Dhandho Investor"
You are currently using the site but have requested a page in the site. Would you like to change to the site? Mohnish Pabrai. 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.
The Dhandho Investor : The Low-Risk Value Method to High Returns
Mohnish Pabrai: My objective in writing The Dhandho Investor was to crystalize some concepts in my own mind. As they say, the best way to learn is to teach. I found that the process of writing the book helped me formalize the principles inside. Could you tell that story, or if you prefer, give another illustration of what you meant with this concept. Pabrai: The Patel story is a great one because it illustrates the concept really well. In fact, in a number of conversations with Charlie Munger, he always brings that up and reminds people never to try to compete with the Patels in the motel business. Unfortunately, most professional money managers have never run a business before.