Thoughts and Riches

.....a blog about personal finance, motivational stories, deals, and special offers

Books

Web Domain Registration

Monday, July 23, 2007

The Dhandho Investor - value investing made simple and interesting

Have started reading The Dhandho Investor: The Low - Risk Value Method to High Returns. This investment book is written by Mohnish Pabrai who had previously written Mosaic: Perspectives on Investing which is now selling for $300 and up at Amazon.com.

The Dhandho Investor is a short book, consisting of 17 chapters and 196 pages. The word "Dhandho" means "endeavors that create wealth". True to its title, the book focuses on endeavors that create wealth but do so by maximizing rewards while simultaneously minimizing risks. The books dispels the notion that you need to take greater risks to maximize rewards. Some of the tenets of the Dhandho framework are:

- Invest in existing businesses
- Invest in simple businesses
- Few bets, big bets and infrequent bets
- Margin of safety

So far, I have liked reading the book and the various stories it contains. The examples and analysis given in the book are quite interesting yet simple to understand.

What's good about the author, Mohnish Pabrai, is that he is not just an author but he also actively manages his hedge funds and is a managing partner of Pabrai Investment Funds. He considers himself to be a disciple of value investors, Warren Buffett, and Charlie Munger, and uses their techniques to manage his funds. His funds supposedly have outperformed all major indices and over 99% of the actively managed funds, returning 28% annually, after expenses! Another good thing about him is that he includes his hedge fund holdings in the 13F-HR quarterly filings with the SEC - these filings can be used as a great learning tool to find out about his holdings.

For Motley's Fools'and GuruFocus' review on The Dhandho Investor, check out:

Fool.com: Foolish Book Review: "The Dhandho Investor"

GuruFocus.com: Book review/summary: The Dhandho Investor - Mohnish Pabrai

Other links on Mohnish Pabrai:

Pabrai's Perfect Portfolio
Superinvestor Review: Mohnish Pabrai
Pabrai's foundation: Dakshana

As always, a final disclaimer: the purpose of my writings or this web site is not to give any financial advice nor make any recommendations. This site is just a blog of my activities, interests and thoughts. The links are provided for information purposes only. Trading options and stocks can be very risky, so you need to exercise your judgment and seek competent advice before investing in such instruments.

Labels: rev

posted by Ruby @ 12:24 AM

0 Comments:

Post a Comment

<< Home

See important Disclosure and Disclaimer

Favorite Quote

"If you look at what you have in life, you will always have more. If you look at what you do not have in life, you will never have enough".
- Author Unknown

Disclosure

This site uses cookies from companies like Google and others to enable the companies to deliver their services, personalize their ads and product offerings, and for traffic analysis. Information about your use of this site is shared with these companies. By using this site, you agree to its use of cookies. Additionally, this site, including blog posts, may contain reviews, links, banners, text and other forms of advertisements for products, services, courses, and so forth of companies of which we may be an affiliate member or for which we may get paid for referrals. This site may also contain blog posts for which we are paid, as well as blog posts regarding products or services of companies from which we may have received complimentary products or services.

Reward Surveys/Panels/Shopping/Contests