A comprehensive value investing framework for the individual investor In a straightforward and accessible manner, The Dhandho Investor lays out the powerful framework of value investing. Written with the intelligent individual investor in mind, this comprehensive guide distills the Dhandho capital allocation framework of the business savvy Patels from India and presents how they can be applied successfully to the stock market. The Dhandho method expands on the groundbreaking principles of value investing expounded by Benjamin Graham, Warren Buffett, and Charlie Munger. Readers will be introduced to important value investing concepts such as "Heads, I win! Tails, I don't lose that much!," "Few Bets, Big Bets, Infrequent Bets," Abhimanyu's dilemma, and a detailed treatise on using the Kelly Formula to invest in undervalued stocks. Using a light, entertaining style, Pabrai lays out the Dhandho framework in an easy-to-use format. Any investor who adopts the framework is bound to improve on results and soundly beat the markets and most professionals. **

Review

"Today's greatest rising investor" --Motley Fool "How to invest the way an Indian migrant with little money would do - by looking for companies with little downside…" ( Financial Times , Tues 26th February)

From the Inside Flap

All investors are told that if you want to earn high rates ofreturns, you must take on greater risk. Of course, thegroundbreaking value investing strategies of Benjamin Graham,Warren Buffett, and Charlie Munger have shown that it is indeedpossible to keep risk to a minimum while still making a reasonableprofit. The Dhandho method takes their successful approach toinvesting one step further and shows how you can actually maximizerewards while minimizing risk. Dhandho (pronounced dhun-doe), literally translated, means"endeavors that create wealth." In The Dhandho Investor, MohnishPabrai demonstrates how the powerful Dhandho capital allocationframework of India's business-savvy Patels can be successfullyapplied and replicated by individual value investors in the stockmarket. The Patels, a small ethnic group from India, first beganarriving in the United States in the 1970s as refugees with littleeducation or capital. Today, they own over $40 billion in motelassets in the United States, pay over $725 million a year in taxes,and employ nearly a million people. How did this small,impoverished group come out of nowhere and end up accumulating suchvast resources? The answer lies in their low-risk, high-returnapproach to business: Dhandho. This book will show you how to usethat same technique to generate high returns in the stockmarket. Pabrai's hedge funds, Pabrai Investment Funds, have outperformedall of the major indices and over 99% of other managed funds.$100,000 invested with Pabrai in 1999 was worth over $659,000 by2006—an annualized return of over 28% after all fees andexpenses. In this book, Pabrai distills the methods of Buffett,Graham, and Munger into a user-friendly approach applicable toindividual investors. Combining their legendary investing wisdomwith the business acumen of the Patels, Pabrai lays out the Dhandhoframework in an easy-to-use format that will help any investorsignificantly improve on their results and soundly beat themarkets—as well as most professionals. Pabrai also details each deceptively simple Dhandho concept in astraightforward, entertaining fashion, with individual chaptersthat explain why you should: Invest in Simple Businesses, Fixate onArbitrage, Invest in the Copy Cats Rather than the Innovators, andother simple but proven concepts for low-risk, high-reward Dhandhoinvesting.