Heads, I win; Tails, I don’t lose much
Published on August 27, 2007
Published on August 27, 2007
(for details pls visit www.OptionPundit.net)
I love this philosophy and that’s what I try using at OPN. OPN’s portfolios are based on statistical probability advantage.
Let me introduce a great book that I finished reading over the weekend. The book is by Mr. Mohnish Pabrai (The “copy cat” of Mr. Warren Buffet). To briefly introduce Mr. Pabrai, let me share with you his achievements first- Pabrai’s hedge funds, Pabrai Investment Funds, have outperformed all of the major indices and over 99% of other managed funds. $100,000 invested with Pabrai in 1999 was worth over $659,000 by 2006-an annualized return of over 28% after all the fees and expenses.
“The Dhandho Investor” (TDI) is a new book by Mohnish in value investing arena. An excellent book that is easy to read and understand. Written in plain simple English vs. complicated financial Jargons, TDI has distilled the very best thoughts of Warren Buffet, Benjamin Graham and Charlie Munger.
Dhandho (Pronounced as dhun-doe) is a Guajarati (One of the Indian languages) word that comes from Sanskrit root word “Dhana” meaning wealth. Dhan-doe, literally translated, means “endeavors that create wealth”.
Now let’s dive into why you should be spending less than $20 bucks on this great book.
Now let’s put your investment in this book in the Dhandho framework. Heads, I win; Tails, I don’t lose much (less than $20)!
Enjoy reading, profitable trading, OP
Disclaimer: My investment in this book has paid-off after finding this wonderful company from one of the resources (free btw) that I plan to use option strategies on.
Book is great, but leaves the reader wondering how he can value invest in a business on his own. For that there is no information in the book. In other words the book withholds the very essence of valuing a business and applying that to stocks. For that, you would perhaps have to become a Pabrai investment lackey and invest in his fund.
I would highly suggest, one should learn to fish on his own. You cannot rely on others. But such knowledge is hard to come by. Therefore you need to buy this book, it tells you exactly how you can go about valuing a business just like Warren Buffet , and how to simply research everything from MSN money and Internet, and know if its a business/ stock that you want to value invest and buy. This book is also written by a Warren Buffet devotee, and is named after Warren Buffets Rule#1.
PHIL TOWNs – RULE#1 Now AVAILABLE in paperbacks
Phil is a great guy and he delivers what Dhando investor witholds.
Dayton, thanks for sharing this. I haven’t read this book yet so I can’t comment much. From the website though it seems there is some value in it.
Cheers and profitable investing, OP
Dhando Investor is a great book, but its seriously disqualifies itself when it doesn’t reveals how a business is valued.
It doesn’t matters what Sir Richard Branson did or how the Patels made out, what matters most, how do I make out in this world of investing? I am sure every reader would like to know that answer. That is where the book ends, leaving you holding an empty bag.
PHIL TOWN comes off giving you the goods first and than telling you how to survive with Technical trading, how to value everything yourself based on Warren Buffets methods. He is a great guy, very giving indeed.
[…] where I would like to use the term “Heads I win, Tails I don’t lose much” as made popular by Mohnish Pabrai . As of this writing, EGPT (Market Vectors Egypt Index ETF) that represents Egypt stocks market is […]