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

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

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

Author: Mohnish Pabrai
Edition: Hardcover
Published: 2007-04-06
ISBN: 047004389X
Number of pages: 208
Publisher: Wiley

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

Book Review: trite, simplistic analysis written for a sixth grader
Summary: 1 Stars

An easy read but essentially trivial. A hotelier example and a few other vignettes are used to make the case that there's a free lunch (no risk, high reward). As if it was that easy. Actually the hotelier example (investing a couple of million in a hotel in the middle of the So Cal desert, after 9/11, that just happened to work out) makes the case there is no free lunch. A better book is by Dreman, on contrarian investments, or "Fortune's Formula" by Poundstone, if you're into this thesis of a free lunch.

Avoid this book like the plague.

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

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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