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$100,000 invested with Pabrai in 1999 was worth over $659,000 by 2006 - an annualized return of over 28% after all fees and expenses. Pabrai's hedge funds, Pabrai Investment Funds, have outperformed all of the major indices and over 99% of other managed funds.
The dhandho investor review how to#
This book will show you how to use the same technique to generate high returns in the stock market. 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. Today, they own over $40 billion in motel assets in the United States, pay over $725 million a year in taxes, and emply nearly a million people.
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The Patels, a small ethnic group from India, first began arriving in the United States in the 1970s as refugees with little education or capital. In The Dhandho Investor, Mohnish Pabrai demonstrates how the powerful Dhandho capital allocation framework of India's business-savvy Patels can be successfully applied and replicated by individual value investors in the stock market. Dhandho (Pronounced dhun-doe), literally translated means 'endeavors that create wealth'.The Dhandho moment takes their successful approach to investing one step further and shows how you can actually 'maximise' rewards while 'minimizing' risk. Of course, the groundbreaking value investing strategies of Benjamin Graham, Warren Buffet and Charlie Munger have shown that it is indeed possible to keep risk to a minimum while still making a reasonable profit. All investors are told that if you want to earn high rates of returns, you must take on greater risk.Any investor who adopts the framework is bound to improve on results and soundly beat the markets and most professionals. Using a light, entertaining style, Pabrai lays out the Dhandho framework in an easy-to-use format. Readers will be introduced to important value investing concepts such as "Heads, I win! Tails, I dont lose that much!," "Few Bets, Big Bets, Infrequent Bets," Abhimanyus dilemma, and a detailed treatise on using the Kelly Formula to invest in undervalued stocks. The Dhandho method expands on the groundbreaking principles of value investing expounded by Benjamin Graham, Warren Buffett, and Charlie Munger. 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. In a straightforward and accessible manner, The Dhandho Investor lays out the powerful framework of value investing. A comprehensive value investing framework for the individual investor.The Dhandho Investor: The Low-Risk Value Method to High Returns.