 |
|
| View previous topic :: View next topic |
| Author |
Message |
dash
Veteran Poster
Joined: 12 Apr 2005
Posts: 473
|
 Posted: Sun Jun 24, 2007 9:07 am Post subject: The Dhandho Investor |
 |
|
http://www.amazon.com/Dhandho-Investor-Value-Method-Returns/dp/047004389X
Written by Mohnish Pabrai whose hedge fund has compounded an average annual return of 26% since it was launched in 1999.
Here's a review from the FT:
http://www.ft.com/cms/s/efc5115c-20b1-11dc-8d50-000b5df10621.html
Here are some salient points:
| Quote: | First, find a bet with the minimum downside possible and only then start to look at possible returns.
Second, make big bets (“Few Bets, Big Bets, Infrequent Bets”).
Third, invest in simple businesses. “If it takes more than a short paragraph,” he says, “there’s a fundamental problem.
Finally, buy distressed businesses in distressed industries, because they are the cheapest – like US motels in the early 1970s. |
But the most interesting idea from my point of view is the notion that the market often equates uncertainty with risk, and that these are not the same things:
| Quote: | | One is to invest in companies with high uncertainty. If there are many possible outcomes for a company in trouble, its share price will suffer – even if in fact most of the outcomes are positive. Markets often in practice treat high uncertainty as a high risk of a big loss. The two are not the same. |
|
|
| Back to top |
|
 |
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 6707
Location: Sunny California
|
| Posted: Sun Jun 24, 2007 10:59 pm Post subject: |
|
|
All good points. Though I continue to hold some GE.
Interesting how Indians have reasserted themselves as gurus--of the management variety this time. Mittal and Infosys only most prominent amoung them.
_________________
Today is the Tomorrow you worried about Yesterday! |
|
| Back to top |
|
|
dash
Veteran Poster
Joined: 12 Apr 2005
Posts: 473
|
| Posted: Thu Jul 12, 2007 7:47 am Post subject: |
|
|
| Quote: | Mohnish Pabrai Interview
Here is an interview with the man who just paid $650,000 for lunch with Warren Buffett. It was sent to me by the interviewer and can be found at Investorguide.com
July 11, 2007
Interview conducted by Tom Murcko.
It is my privilege to bring you the following interview I recently conducted with value investing superstar Mohnish Pabrai. Mohnish is one of my favorite investors who doesn't have the initials W.B. His investment style is similar to the low risk, high value style followed by Warren Buffett and myself, and has led his portfolios to perform marvelously since the 1990s.
How successful have his techniques been? I'll let the numbers speak for themselves: A $100,000 investment in Pabrai funds at inception (on July 1, 1999) was worth $722,200 on March 31, 2007. That works out to an annualized return of 29.1%, and is after all fees and expenses. Assets under management are over $500 million, up from $1 million at inception. Although a person probably can't get into the investing hall of fame with eight years of outperformance (even if they crush the indices), Pabrai is already mentioned in most articles about the search for the next Warren Buffett, and justifiably so.
Equally important, he genuinely wants to help others become better investors, and in that spirit has just published his second book, The Dhandho Investor. The book is both illuminating and easy to read, and it deserves to be on every investor's bookshelf next to Benjamin Graham's The Intelligent Investor. |
http://valueplays.blogspot.com/2007/07/mohnish-pabrai-interview.html |
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 7244
Location: Houston, Texas & Los Angeles, California
|
|
| Back to top |
|
|
Please log in to view without the ad banners |
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Memberlist
Usergroups
Statistics
Register
Profile
Log in to check your private messages
Log in
