I found the book very interesting and I learned quite a bit. Finally, the author quotes a wonderful Khalil Gibran passage to emphasize the importance of giving and sharing your riches (once you have them, that is ? ) Dhandho investor – My thoughts
#Dhandho investor near mr how to
The book winds up with two parables from Mahabharata – one about Abhimanyu to illustrate the points about how to get out of an investment, and another about Arjuna about how to stay focused. Each one of them makes for a swift, interesting read. Among these chapters, there is not a single dry pedantic essay – everyone of them is filled with anecdotes and examples from the author’s experiences in the market. All these principles are first enumerated, and then explained in individual chapters with copious examples. And about how such opportunities are rare and when you find it, you should bet big, but still have a margin of safety. These principles, which animate the rest of the book, are things like investing in simple, existing businesses that have a wide moat and are available at a discount to its intrinsic value. And talks about what principles to use to identify Dhandho opportunities in the stock market. And when you find these opportunities, you bet big and wait to realize the value.Īs you can probably see, this approach is but the crux of value investing as prescribed by Buffett and co.Īlthough the book starts off with entrepreneurial applications of the Dhandho philosophy, the rest of the book takes an investment angle to it. This, in essence, is the Dhandho philosophy – look for and study opportunities where the payoff for success is significantly higher (along with its probability) and the loss potential (both probability and magnitude) is significantly low. Yes, the last one kinda sticks out as an oddman, but I am willing to give the author a pass for making it interesting ?Īfter these stories, the book goes on to find the commonality between these successes – how identifying opportunities where if you win you win big, and if you lose, you don’t lose that much is the key to their successes. The second chapter is another motel success story, the third chapter is the story of Laxmi Mittal and his steel business, and the fourth chapter is about Richard Branson Virgin Atlantic. It gives a historic and geographic narrative (from Gujarat to Africa to US through 60s and 70s) of that incredible wealth building journey, from a socio-economic perspective.
How they came, saw, and conquered, from coast to coast, the business of inexpensive night stays for travellers. The first chapter is about the success of Patels in the motel business in the US. The first 4 chapters are illustrations of dhandho investing. Mohnish calls his ‘brand’ of value investing ‘Dhandho’ investing (Dhandho is a Gujarati word that means ‘endeavours that create wealth’) The author, Mohnish Pabrai, a celebrated fund manager, is a disciple of Warren Buffet (he famously once bid $650,000 in an auction to have lunch with Mr Buffett himself) and, in this book, he details the value investing principles that he advocates and adheres to. But the principles it espouses are quite timeless, and as the author’s active blog suggests, still being practiced assiduously. The book itself is not new (nor updated recently).
#Dhandho investor near mr free
It’s a delightful book – expertly written with ideas that you can use in any free market economy. Although the author is Indian, and there are many ‘Indian’ anecdotes in the book, it is aimed at an American audience.īut that should not stop you from grabbing it and reading it. We’ve heard of fusion music, we’ve heard of fusion cuisine, so why not a fusion book?Ĭolour me naive, but when I picked up ‘The Dhandho Investor’ – a book with an Indian author and an Indian name, I thought it would be about Indian markets and for Indian investors.