The Dhandho Investor: The Low-Risk Value Method to High Returns

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John Wiley & Sons, Jan 6, 2011 - Business & Economics - 208 pages
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 don't lose that much!," "Few Bets, Big Bets, Infrequent Bets," Abhimanyu's dilemma, and a detailed treatise on using the Kelly Formula to invest in undervalued stocks. 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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A brilliant book from a superlative investor

User Review  - errolgarner - Overstock.com

Short and helpful. We should all strive to think more like him. Fascinating and memorable opening chapter on the Patels and the U.S. hospitality industry. Read full review

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I sat next to Mohnish once on a flight to India, so I had to read it.
A very simple read.. For a young investor like me who right now is doing nothing but reading about investing and soaking in the
information, this book gave me great insight on what challenges lie ahead and how to acquire the knowledge to get through them.
Great job
 

Contents

Patel Motel Dhandho
1
Manilal Dhandho
15
Virgin Dhandho
23
Mittal Dhandho
29
The Dhandho Framework
35
Dhandho 101 Invest in Existing Businesses
47
Dhandho 102 Invest in Simple Businesses
51
Dhandho 201 Invest in Distressed Businesses in Distressed Industries
59
Dhandho 302 Fixate on Arbitrage
85
Dhandho 401 Margin of Safety Always
99
Dhandho 402 Invest in LowRisk HighUncertainty Businesses
107
Dhandho 403 Invest in the Copycats rather than the Innovators
131
Abhimanyus Dilemma The Art of Selling
147
To Index or Not to Index That Is the Question
169
Arjunas Focus Investing Lessons from a Great Warrior
179
Notes
185

Dhandho 202 Invest in Businesses with Durable Moats
65
Dhandho 301 Few Bets Big Bets Infrequent Bets
71

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About the author (2011)

Mohnish Pabrai is the Managing Partner of Pabrai Investment Funds, an investment group modeled after the original 1950s Buffett Partnerships. Since its inception in 1999, Pabrai Funds have delivered annualized returns of over 28% (net to investors). He has been favorably profiled by Forbes and Barron's and has made guest appearances on CNBC and Bloomberg TV and Radio.

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