The Dhandho Investor

About the book and its Contents



Dhandho (pronounced as dhun-doe) is said to mean 'endeavors that create wealth.' In this book, Mohnish Pabrai, shares his accumulated investment knowledge and lessons to his readers. He also  believes that it is indeed possible (but difficult) to find high returns using a low-risk value method. This method he developed was patterned after Warren Buffett's early business partnerships and has earned outstanding annual returns for his investors in the Pabrai funds.

Review

This 200 page book provides an explanation of the Dhandho Framework as well as real-life examples of Dhandho investors. Furthermore, the author does a good job of keeping his explanations simple and understandable. In providing examples, he uses basic math and probabilities. In addition, his investing lessons are worded not in generic terms but in more specific jargon. An example of this is: "Dhandho 201: Invest in Distressed Businesses in Distressed Industries" instead of saying 'find businesses that offer good value.'

Difficulty Level = 2/5

Personal Rating = =4.5/5

This is a book worth reading and ordering from Amazon (if you fail to find it in our local bookstores).


Personal finance tip for today:

To succeed in investing, it is not enough that you buy a so called investment. You must purchase that investment at a bargain value. By bargain I mean that you bought a really valuable asset at a good price that benefits you more. In other words, you were able to buy gold at the price of silver. If you bought your gold at the price of diamonds, then it is very difficult for that investment of yours to go up in value.