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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