Mohnish Pabrai

The Dhandho Investor

1. IDEA 1

   Patel motel owners showed the way

   Pabrai describes how Gujarati Patel immigrants in America bought motels cheaply and ran them frugally. Their low-risk, high-return approach inspired his idea of Dhandho, meaning endeavours that create wealth. They often lived in the motels themselves.

2. IDEA 2

   Heads I win, tails little lost

   Pabrai's central idea is to seek opportunities where the possible loss is small and the possible gain is large. He sees this as the essence of good business and investing decisions.

3. IDEA 3

   Buy existing businesses

   Pabrai argues that buying or investing in existing businesses is less risky than starting new ones. Established firms have known results that can be judged. Their track record reduces uncertainty.

All 8 ideas from The Dhandho Investor →