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Monday, January 21, 2013

Dhando

Just finished reading Mohnish Pabrai's book: Dhando

Lot of copying from Warren Buffet's value investing principles but at the same time telling how innovation doesn't always lead to competitive advantage. Interesting read - boring if you already have read Ben Graham's Intelligent investor.

Wanted to document the principles of the Dhando value investing.


Key principles of Dhando:
  •          Invest in existing businesses
  •          Invest in simple businesses
  •          Invest in distressed businesses in distressed industries
  •          Invest in businesses with durable moats
  •          Few bets, big bets, and infrequent bets
  •          Fixate on arbitrage
  •          Margin of safety—always
  •          Invest in low-risk, high-uncertainty businesses
  •          Invest in the copycats rather than the innovators.
      Not very insightful notes like my other posts but if you are thinking of a business then you could evaluate it with the above principles and you will find out if there is a moat of competitive advantage for the business.

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