Why It Ranks #97
The most accessible book on asymmetric investing. Pabrai distills Buffett, Graham, and Munger into a framework so simple that anyone can understand it — and backs it up with his own track record of applying it.
The Review
Mohnish Pabrai reverse-engineers the investment strategies of Indian-American motel owners (the Patels), Richard Branson, and Warren Buffett to extract a simple framework: 'Heads I win, tails I don't lose much.' The Dhandho Investor argues that the best investments have limited downside and unlimited upside, and Pabrai provides specific examples of how to find them using concentrated bets on deeply undervalued businesses.
Key Takeaways
- 1Dhandho: heads I win, tails I don't lose much — seek asymmetric risk/reward
- 2Concentrate your bets — a few high-conviction ideas beat a diversified portfolio of mediocre ones
- 3Buy existing businesses at a discount rather than starting from scratch
- 4Copy successful strategies — there is no shame in cloning what works
Fun Facts
- •Pabrai paid $650,100 at a charity auction to have lunch with Warren Buffett in 2007
- •He runs Pabrai Investment Funds modeled directly on Buffett's original partnership structure
- •The 'Patel motel cartel' case study shows how Indian immigrants dominated the U.S. motel industry through Dhandho principles
Book Details
The Dhandho Investor by Mohnish Pabrai
Pages
208
Goodreads Rating
4.17/5
Copies Sold
200K+
First Published
2007
I Document Every Trade — Even the Losses
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