“The Dhandho Investor: The Low-Risk Value Method to High Returns” is a book written by Mohnish Pabrai, a successful investor and managing partner of Pabrai Investment Funds. Published in 2007, the book outlines Pabrai’s investment philosophy, which is inspired by the principles of value investing practiced by Warren Buffett and Charlie Munger.
In “The Dhandho Investor,” Pabrai introduces the concept of “dhandho,” a term borrowed from the Gujarati language that roughly translates to “endeavors that create wealth.” He outlines a simple yet effective approach to investing based on the principles of buying businesses with durable competitive advantages at a significant discount to their intrinsic value.
Pabrai emphasizes the importance of focusing on the downside risk of an investment while also seeking high upside potential. He advocates for a concentrated portfolio of high-conviction investments and emphasizes the need for patience and discipline in the investment process.
Through a series of case studies and real-world examples, Pabrai illustrates how investors can apply the dhandho framework to identify undervalued opportunities and build wealth over the long term. He also shares insights into his own investment journey and the lessons he has learned from both successes and failures.
“The Dhandho Investor” is praised for its simplicity, clarity, and practicality, making it accessible to both novice and experienced investors alike. It has become a beloved resource for value investors seeking to improve their investment skills and achieve superior returns in the stock market.
