The Dhandho Investor: The Low-Risk Value Method to High Returns
- Downloads：6292
- Type：Epub+TxT+PDF+Mobi
- Create Date：2021-06-01 11:53:34
- Update Date：2025-09-06
- Status：finish
- Author：Mohnish Pabrai
- ISBN：047004389X
- Environment：PC/Android/iPhone/iPad/Kindle
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Summary
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。
Reviews
Caleb Kim
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Endeavours that create wealthHeads I win; tails i dont lose much
Dheeraj Lalwani
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The book starts off as quite boring but gets better; it broadened my horizons regarding value investments。 The second half of the book is much much stronger with a bunch of good investing advice on a contra/value based stock picking and portfolios。 Reiterates a lot of popular investing principles out there without the complex jargon。
Jayakumar Manickavasagam
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Excellent book very simple to read and understand
Cian
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As the author admits， the book shows few new ideas and most of its content could be found in other books on investment。 But it is still a respectable book and worth a read
Ashutosh Singh
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Great book on value investing fundamentals。
Rahul Gupta
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The methods are very conservative with few cherry-picked examples that back it up。 Reality is much different。 I liked the storytelling side of Mohnish but I did not feel that his methods are practical or backed by data。
Anand
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It's an interesting book， valuable， re-read worthy， sprinkled with simple rules， and experiential read （to the details） and valuable for "intermediate investors" as it presumes you're already read & familiar with stocks， terminology & works of Greenblatt， Graham and specially Buffet。 Not much original here。 The major takeaway is making low risk， few bets， big bets and infrequent bets with a limited holding time-frame of 1-3 years using a magic formula （by Greenblatt）。 If you know the terminology It's an interesting book， valuable， re-read worthy， sprinkled with simple rules， and experiential read （to the details） and valuable for "intermediate investors" as it presumes you're already read & familiar with stocks， terminology & works of Greenblatt， Graham and specially Buffet。 Not much original here。 The major takeaway is making low risk， few bets， big bets and infrequent bets with a limited holding time-frame of 1-3 years using a magic formula （by Greenblatt）。 If you know the terminology and read at least Greenblatt and Graham， you'll be able to take benefits out of reading it， otherwise later parts of the book could be a bouncer for an entry level investor like me and difficult to relate US examples into Indian context。 。。。more
Frederic Kerr
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This is one of the best books on investing I have ever read。 Too many investing books are short on specifics。 This one opens with the story of a group of Gujarati business people expelled from Idi Amin's Uganda who took advantage of rock bottom motel prices during the US energy crisis of 1973 and became hugely successful motel operators。 It's a great story， made more interesting by author Pabrai's insights into value investing， which he learned by cloning Warren Buffett's approach。 Pabrai beat t This is one of the best books on investing I have ever read。 Too many investing books are short on specifics。 This one opens with the story of a group of Gujarati business people expelled from Idi Amin's Uganda who took advantage of rock bottom motel prices during the US energy crisis of 1973 and became hugely successful motel operators。 It's a great story， made more interesting by author Pabrai's insights into value investing， which he learned by cloning Warren Buffett's approach。 Pabrai beat the market for more than a decade and made himself and his fundholders a great deal of money。Pabrai cites both the Dhandho and Buffett investing styles in his narrative。 They don't align perfectly。 For example， Buffett seeks excellent businesses with high barriers to entry he calls "moats"。 The Dhandho group， many of whom were named Patel， entered mediocre businesses with low barriers to entry， but exploited low entry prices and made the motel investments work by sacrificing family freedom and leisure time for decades。 Beyond the Dhandho mantra of "Heads， I win。 Tails， I don't lose much"， Pabrai imparts a lot of wisdom about key investment issues like separating uncertainty from risk and giving investments three years to work。 He also advocates assigning probabilities to various outcomes and describes the Kelly Formula， which guides investors and bettors on optimal allocation of capital。 He provides many excellent sources of ideas for stock investments and further reading。 Highly recommended。 For other entertaining， well written， useful books on investing， read anything by investor superstars Joel Greenblatt and Peter Lynch。 。。。more
Irishna
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Not so basics of investing but still a good read to inert an investment thinking process started
Ruhan Bidart
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The best book I've read on investments until now。 It has a good set of ideas to the ones who want to invest with good returns but low risk。 The best book I've read on investments until now。 It has a good set of ideas to the ones who want to invest with good returns but low risk。 。。。more
Vishwam Joshi
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Mohnish Pabrai is an Amazing guy， must read for any investor or a businessman， it is a short read but the knowledge you get about strategies or finding a profitable business is immense。
Aditya Chimmapudi
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I’ve seen many articles and books that focus on wealth maximisation。 This is one of the few books that declutters and simplifies the thought process。After reading a bunch of books on investing， I vouch for this。 It is but a simple guide to become self reliant， rather than drift along with mainstream。 The best part of the book is the value investing strategy and look for specific behaviours in a company that one wants to invest。The confusing bit is the Kelly’s formula。 I think it’s my fault as I I’ve seen many articles and books that focus on wealth maximisation。 This is one of the few books that declutters and simplifies the thought process。After reading a bunch of books on investing， I vouch for this。 It is but a simple guide to become self reliant， rather than drift along with mainstream。 The best part of the book is the value investing strategy and look for specific behaviours in a company that one wants to invest。The confusing bit is the Kelly’s formula。 I think it’s my fault as I still can’t see how he came up with probabilities for different cases。 All in all， a great read for a non-finance background rookie investor like me。 。。。more
Anh Nguyen Duc
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"Head I win， Tail I don't lose much。" It's absolutely exciting and pleasing to absorb those precious investing experience （to me， at least） Although each investor has his own method， the author has successfully convey the idea of value investing that made him a fortune。 Many informative as well as practical examples with thoughtful recommendation to dig in。 The book discuss not only stock selection but also selling framework to maximize your profit/prevent compounding loss。 A source of wisdom fo "Head I win， Tail I don't lose much。" It's absolutely exciting and pleasing to absorb those precious investing experience （to me， at least） Although each investor has his own method， the author has successfully convey the idea of value investing that made him a fortune。 Many informative as well as practical examples with thoughtful recommendation to dig in。 The book discuss not only stock selection but also selling framework to maximize your profit/prevent compounding loss。 A source of wisdom for beginning investors。 。。。more
Pawan Dwivedi
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Great read for everyone
Matthew
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This book gives us a clearer understanding how people like Buffet have made their fortunes。 It also gives us generally solid methodology to pick investments that will likely be fruitful。 I found the writing itself to be a bit tedious。 That said， I have great respect for mr。 Pabrai and his successes。 He is clearly one of the few managers who does generally outperform the market through concentrated， calculated bets。 Who would I recommend this to？ Someone who wants an updated and simpler version o This book gives us a clearer understanding how people like Buffet have made their fortunes。 It also gives us generally solid methodology to pick investments that will likely be fruitful。 I found the writing itself to be a bit tedious。 That said， I have great respect for mr。 Pabrai and his successes。 He is clearly one of the few managers who does generally outperform the market through concentrated， calculated bets。 Who would I recommend this to？ Someone who wants an updated and simpler version of "The Intelligent Investor"。 。。。more
Prateek Sharma
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A new approach to investing。
Robbert Manders
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A good book， but similar to several in its genre。
Rajvi
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[3。8 ish stars] Considering that this book isn’t my first investment book rodeo， I did find a lot of repeating ideas and concepts from my previous books that focused on Warren Buffett’s and Benjamin Graham principles like buying investments with large moats and many of the other Buffett’s concepts。 I think this book would have easily been 5 stars if it was the first investment book I picked up！The Dhando framework revolves around Low Risk and High Returns where you can say “Heads， I win; tails， [3。8 ish stars] Considering that this book isn’t my first investment book rodeo， I did find a lot of repeating ideas and concepts from my previous books that focused on Warren Buffett’s and Benjamin Graham principles like buying investments with large moats and many of the other Buffett’s concepts。 I think this book would have easily been 5 stars if it was the first investment book I picked up！The Dhando framework revolves around Low Risk and High Returns where you can say “Heads， I win; tails， I don’t lose much！” In the Dhando Framework， Pabrai has outlined and explained 9 parts of the framework（which I found super insightful）:1。 Invest in Existing Businesses 2。 Invest In Simple Businesses3。 Investindistressedbusinessesindistressedindustries。 4。Investinbusinesseswithdurablemoats。5。 Few bets，bigbets，andinfrequentbets。6。 Fixated arbitrage。7。 Margin of Safety—always。8。 Invest in low-risk，high-uncertaintybusinesses。9。 Invest in the copy cats rather than the innovators。I really enjoyed the examples of the Patels， Manilal， and Mittal that were explored in the beginning of the book。 As someone who is Gujarati， I could really relate to the stories he presented at the beginning。 Often times， people make toxic stereotypes of Indians （or all Asians in general） and businesses they own like motels or gas stations and they often become a joke like “oh you’re a Patel ？ How many motels do you own ？” I really valued the representation Pabrai brought onto Indian entrepreneurs and really exemplified their hustle， hard work， and sacrifices。 The entrepreneurs Pabrai mentioned in the beginning of the book don’t really come to mind when you think of entrepreneurs or investors and this， for me， was the most refreshing and unique quality about this book。 Every investment book mentions big names like Ford and Bill Gates but not everyone is like Ford and Bill Gates。 Moreover， not everyone is a white male and the term “hustle” is different for everyone。 I thoroughly enjoyed the representation， the refreshing stories of new names， and some of the principles。 I was entertained when Pabrai made connections of the Mahabharat and investing - who would’ve thought！ Although， since many of the basic investment principles mentioned in this book are not totally new to me I did find it repetitive at some points， but that just solidifies the fact that if multiple authors are writing about the same thing， it must be working。 Nevertheless， I think this is a great introductory book for anyone to pick up！ 。。。more
Pyry Takala
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a few decent thoughts， but mostly just citing Buffett
Ranit Dey
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The writer is a true disciple of Warran buffet and showcases his low-risk high potentials bets in this book。 And describes the details of value investing。
Laura Alonso
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I don't know I can truly mark this book as done， a second read is needed to absorb the content :DI very much enjoyed the cultural and socioeconomic background offered with the stories。 But I got kind of lost with the numbers even though they weren't a large part of the content。 In my mind they felt very hypothetical but the thinking behind them is what really matters。Prabai shares stories related to the usual wealthy investors， Warren Buffet， Charlie Munger， Benjamin Graham。 However， the brief b I don't know I can truly mark this book as done， a second read is needed to absorb the content :DI very much enjoyed the cultural and socioeconomic background offered with the stories。 But I got kind of lost with the numbers even though they weren't a large part of the content。 In my mind they felt very hypothetical but the thinking behind them is what really matters。Prabai shares stories related to the usual wealthy investors， Warren Buffet， Charlie Munger， Benjamin Graham。 However， the brief but pretty cool story involving mathematician Edward Thorp was probably my favorite mainly because of my unawareness around it。I'll recommend this book to anyone who is looking for an entertaining read with a financial aspect or anyone interested on how Prabai thinks。 。。。more
Ervent G
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It’s amazing that one can fill a boatload of investment wisdoms in a small book。 This book is certainly a no brainer dhando investment。
Chris Boutté
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This book is absolutely ridiculous， and it hurts my soul that people who I respect think that this is one of the best books ever written on investment。 The theory is great， but the practice and arguments that Pabrah presents are so bad that it's hard to put into words。 The idea of value investing is to watch companies that dip below their value， so you buy them "on sale"。 That makes sense。 It's like flipping a house or buying a cheap car， doing minimal repairs and making a profit。 The issue is t This book is absolutely ridiculous， and it hurts my soul that people who I respect think that this is one of the best books ever written on investment。 The theory is great， but the practice and arguments that Pabrah presents are so bad that it's hard to put into words。 The idea of value investing is to watch companies that dip below their value， so you buy them "on sale"。 That makes sense。 It's like flipping a house or buying a cheap car， doing minimal repairs and making a profit。 The issue is that the author makes insane arguments。 The whole premise is small down side with huge upside， or as the author says， "tails I win， heads I don't lose much。" A great example of why this is silly is he tells the story of how Patel families own most of the motels in the USA。 It started with Papa Patel taking the only $9，000 he had and putting it into a hotel and hoping for the best。 My question is， in what universe is investing 100% of you and your family's money "low risk？"。 Later， the author tells the story about how he did the same thing with his only $30，000 and his backup plan was to pull out of his 401k early。 Noboy would call me a genius for taking my family's savings to the roulette table， putting it all on black and calling it low risk high reward。 His argument is that "if it doesn't work， and you lose， you can just make the money back by getting a job。" This is the most insane argument I've ever heard。 I can go on and on about how silly this author is， but if you can get passed his ridiculous examples and understand the fundamentals of how to calculate the value of a stock， you can be smarter than him with your money and diversification。 。。。more
Tim
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Really enjoyed the audiobook。 He is a good storyteller， and the values he lives by match my own。
Pawin
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Dhandho principle: head I win， tail I also win。 Such a great book to learn about basic investment concepts and real history of great investors and their decisions。
Yose Dominguez
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Amazing book to understand investments。 The book is really easy to understand amd has great examples。
元伟 陈
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A must read for any serious investor。 A look into the Patels in America and lots of other insights gleaned from the Dandho way of business， low risk and unlimited returns。
Jaan Liitmäe
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Nice little book about absolute basics of business and returns - good to remain for yourself from time to time！
Eric
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I read this based on a recommendation from listening to the InvestED Podcast。 I enjoyed reading stories about other investors' journeys。 I especially enjoyed the story about the Patels and how they grew their fortune from a seemingly dire situations after leaving Uganda。 Overall， this book has a good mix of stories and tangible information that will make me a better investor in the future。 This was definitely a worthwhile read。 I read this based on a recommendation from listening to the InvestED Podcast。 I enjoyed reading stories about other investors' journeys。 I especially enjoyed the story about the Patels and how they grew their fortune from a seemingly dire situations after leaving Uganda。 Overall， this book has a good mix of stories and tangible information that will make me a better investor in the future。 This was definitely a worthwhile read。 。。。more
Priyavasanthan Pandiyan
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