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

Mohnish Pabrai

Jan 2011 · Sold by John Wiley & Sons

About this ebook

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.

Ratings and reviews

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

I still could not understand dcf structure regarding how last row value comes in "Present Value of Future Cash Flow". better you explain calculation regarding it. Except that it is really nice book. I learnt so many new things from this book regarding value investing. It worth reading. Thanks mohnish.

Mohnish provides insights as to how and why (named and held) investments were undervalued by the market. He also uses Buffett-like analogies and storytelling to enhance the reader's understanding of perceiving value opportunities. The book is easy to consume and is packed with invaluable material.

About the author

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.