THE DHANDHO INVESTOR (BY MOHNISH PABRAI)
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- เผยแพร่เมื่อ 15 มิ.ย. 2024
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One of India’s best (if not the best) value investors, Mohnish Pabrai, shares his best advice for how to achieve a low-risk, high-return asymmetry investing in the markets in this book: The Dhandho Investor. This video is my interpretation on my favorite takeaways from the book.
Playlist of more advanced stock market concepts: bit.ly/2QOANKP
Top 5 takeaways from Mohnish Pabrai’s The Dhandho Investor:
0:00 Intro
00:45 1. The Dhandho framework
04:46 2. Investing is all about the odds
08:00 3. DCF analysis
10:44 4. Look for low-risk, high-uncertainty businesses
12:49 5. The art of selling
TL;DW:
- Follow the Dhandho framework
- Size your bets using odds and the Kelly formula, or a predetermined fraction of Kelly
- Calculate the underlying value of a business using a DCF-analysis
- Look for investments with a wide range of possible outcomes. People are generally afraid of making such investments, which results in lower prices than warranted.
- Allow your investments sufficient time to reach their intrinsic value but realize that there’s also a cost of waiting. Sometimes, you have to admit that your wrong and take a loss.
My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there - investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties - I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process - upgrading your money-making toolbox.
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Playlist of more advanced stock market concepts: bit.ly/2QOANKP
Please use less short forms or explain them like PE you used and also give a over view over terms like Kelly formula and how it work without very fancy terms rest all is great 👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻
Hi Swedish Investor, I just wanted to enquire something in regards to DCF Model by Mohnish Pabrai. I realised there isn't a margin safety on top of DCF. Was it not mentioned in the book? Do you recommend Margin of Safety after calculating DCF?
I really love your channel, taken globally it seems more an investing and money management course than a "channel", great job
This was one of the first books on investing that really ring a bell for me. The Patel's hotel empire: super efficiently run and super attractive rates for guests. As an investor: heads I win, tails I don't lose much
🤫 you crack our strategy !!
Hands down swedish investor you have probably reviewed every revelante book on investing. Good jo
Love your book summaries!
So simple and easy to consume.
Thank you!
Ur presentation direct goes inside brain.. Great art of work
Thank You . An excellent presentation.
Love your work
Thank you swedish investor
❣️❣️❣️
I'm happy to hear it Swaraj Choudhari! Thank you for your support! 🙌
You explained it simple.... Grt work Thanks
I think this book summary is useful a lot for people who have a few experiences in the stock market and want to be successful as value investors that you need to research the quality information and adapting for your own.
Glad 😃, I found another informative and intelligent investor 🧐. Great information and I will definitely use this info.
hey congratulations... mohnish pabrai appreciate your video on his book...
I noticed him a few days ago while reading articles. Perfect timing, thanks bro
Cheers Amos 2020! Which article did you find him in, is it worth a read? 😁
Brilliant video. I'm on chapter 4 of this book now and uploading the Summaries. You have given me the big picture. Thank you so much!
Glad you enjoyed it MySweetLuck 😁
You have a great and unique way to get the most juice out of these books, congratulations!
I have one suggestion for you “It’s Not About the Money”
by BRENT KESSEL
Phil Town from Rule #1 Investing speaks HIGHLY of Mohnish Pabrai! Would love to read this book!
Awesome! Phil is great too IMO 👍
@@TheSwedishInvestor maybe you will review his Rule #1 investing book too, I found it very enjoyable.
This is amazing video. Put in my playlist
Always mind blowing summaries, keep going ...
Cheers man! 😁
Amazing, this fascinates me, thank you
Congrats on the great pronunciation of Monish Pabrai.
धन्धो investor mind blowing book👌💐
Very creative! Nicely done!
Fantastic video. Much thanks
Well summarized
Thank you for the summary. It is nice to know different investment strategies of such people. End of the day pick the points which suits your personality and with which you are comfortable. Otherwise the stress is just not worth it.😊
Agreed! There are many different approaches that you can use successfully 👍
Y
Great coverage of the points penned by one of India's greats.
Its amazing to see your channel growing, it appears to be a multi-bagger !!
Thanks for your support Rhys Martins! How many subs were there when you saw the first video? 😊
The Swedish Investor I don't remember the number , but it was around the time when you released your video covering the intelligent investor.
Great video, valuable information! 👍
🙌
Great job
Awesome and insightful content....i am binge watching all your videos...
Haha that is awesome man, I appreciate it! 😁 Any suggestions for improvement? 😊
I'm sure you're already aware, Swedish Investor, but you HAVE to read "Richer, Wiser, Happier" by William Green it is amazing. Thank you for your hard work and the immeasurable value your videos bring us!!
5 Takeaways are great time saver. Thanks😀
I'm glad you like it TempEmail! 😁
Good to see this gem on your list..
🙌
Back to watching your videos as companion guide if I'll ever read a particular book!
Glad to hear it Iresh Rie Dacian! If you have any suggestions on improvements on my end, I'd be glad to hear them 👍
Thank you 🌟
Thanks for all your awesome videos!!
Glad to hear it, you're very welcome! 😁🙌
Very good summary! Thank you!
And by the way - Micron. 😊
Indian writer from my nation feeling proud....thanks for review🙏
Your channel is one of the best thing that happens to TH-cam
I appreciate your support Andrzej Andrzejos! Cheers!
@@TheSwedishInvestor If your channel is dedicated also for daytraders, not only investors, I'd love to see your video based on one of my favourite trading book "How to trade in stocks' by Jessie Livermore :)
Thanks for this!
I've been following your videos for a while, I've bought a few books based on your reviews and it has resulted in a complete modification of my investing approach.
One point - Is it possible to rate the books that you read with something like a five star system? That would help a lot with prioritising my reading list.
Something I would like to see reviewed is Bob Farrell's '10-Rules of Investing' on market psychology but I'm not entirely sure that this is a book. I'm not generally a technical analysis guy but it would be nice to be able to predict Mr Market's mood.
...and, it would great to hear your take away points on some of the classics such as Wealth of Nations or Das Kapital, and for fun Art of War.
Keep up the good work!
Cheers
Phil Roberts thank you for the feedback and all the suggestions, awesome! 😁 I will probably do a top 10 list, or similar, in a video soon, in order to give more specific reading suggestions. I try to avoid having too much of an opinion about the books with the current format, but hopefully such a video can fulfill the same purpose.
I will look into 10-rules of investing and I will add the classics to my list of book suggestions. Cheers!
Great review and points. Though personally I like some other investors who focus more on buying quality companies.
I appreciate! Cheers! 😁
Tks
What program do you use for your "white board videos"?
How did you make the Monte Carlo simulations? I mean, software and code wise. I'm curious :)
Nice vidéo
Best book
Excellent as always. Nice work,mate.
😍
Can you help explain what’s going on at 9:18? At the 10% discount rate, wouldn’t you need less initial capital to achieve the same gains? So why would it be valuated at a lower value if the returns are greater?
@Swedish Investor have you ever invested w Arbitrage? Any experience or more information on this you could recommend? The key question for me is how do I buy a stock on one exchange but sell it on another?
Understand arbitrage with crypto is a bit easier but also practically almost impossible to execute due to volatility.
Can you do some books on real estate investing?
thank you for such a great summary, but i have a question: How did you calculate at 11:18 of the video? Can you help me? Thanks a lot... Love from Vietnam ❣️❣️❣️
Have you checked out the calculator at this website? www.elem.com/~btilly/kelly-criterion/betting-returns2.html
You'll have to experiment some, use the examples that I gave and try to recreate the results, and you'll know how to do your own calculations later
How do you calculate the percentage? That's so hard
for part 4, how do you get kelly 75%? its supposed to be 20.2% of the equity right
Seems like an interesting book to take a look at
I was surprised. First ~25%, I didn't really enjoy, but after that it turned out to be really good. Great summary of classical value investing concepts + adding some new aspects, especially regarding uncertainty and sizing.
The problems with companies that have not changed is slow growth prospects, they are good buys when the market underestimated them
I would like to see the following books reviewed in the future. Author: John Trian with the classic books: The Money Masters, and The New Money Masters. The other book that would be good is The Templeton Touch by William Proctor.
Pabrai regrets mentioning the Kelly Criterion in his book, and said he’d remove it if they ever published a revision.
Hello from Indonesia
Coca Cola or Carlsberg in end of March 2020 was a no brainer. From 60 dow to 36 dollars for a share i Coca Cola meant that it 1: Will go up or 2: if i doesn't go up the dividend will make it worth holding
Can you suggest me book on how to find a mispriced opportunity ?
There is a green trend line in that kelly bet sizing chart..
Hi Erik,
You are doing a great job here. Thanks for the videos. I am not sure you will read this comment, but I have a question for you.
Do you have any plans to crate an episode on the @The Swedish Investor channel about how to manage taxes with investments in Sweden? how to report to the skatteverket, different cases: eu not eu stock, etf, etc..., when do you need to report, in a way with great examples you do here.
Thank you Hasty Bit for the suggestion, and your support 😊 I don't think that I will make such a video unfortunately, as it would exclude 95% of the audience. Reporting taxes is (to my knowledge at least) country-specific, and I only have ~5% Swedish viewers.
Thanks, Erik!
Didn't really get the second takeaway
I find the Kelly formula is a great way to decide WHETHER to invest & how convinced I am of a stock being a good investment. Doing it precisely enough to get an actual usable percentage is, IMO, impossible. Certainly for me.
So why isn’t everyone using Muh kelly formula then? 🤪🤪
10/10!
Love the name and the support bro 🙌
Pabrai says that it was a mistake for him to include the Kelly formula in his book, as it's not relevant for infrequent bets in a concentrated investment portfolio. Curious what you think about his current US holdings: FCAU and MU?
Bradford Kaellner interesting! Do you have a link to a source where he addresses this? Personally, I liked that part of the book a lot as I haven't read about it anywhere else before. They appear to be true value-plays, but to be honest, I don't know enough about them to have a qualified opinion.
@@TheSwedishInvestor He mentions it in multiple recent talks at business schools during the Q&A portion. You can find those on his TH-cam channel.
Please make video on the joy of compounding by gautam baid
Thank you for the suggestion nitish khatri! 👌 Let's see if other people suggest this one too, in that case, I'll add it to my list
Always best knowledgeable video
Love from Gujarat, India ❤️
"We look for the horse with one chance in two of winning which pays you three to one" - can someone explain this with an example?
4:15
good video
next try this book
The Little Book That Builds Wealth
The next one will actually be one of the little books 😁 I'll add your suggestion to the list
how long you have the book reading habit?
will you revice the points of the past books you read
So how do you figure out the odds on winning and losing?
They're subjective.
60 seconds in : I've heard this kind kind of strategy before.. 2 min 20 seconds: Ahh there it is. (warren buffett)
Great vid as always however Mohnish Pabrai regretted putting the kelly formula in the book and said he would take it away if he could. The kelly formula is not usefull for the stockmarket where his basic strat is few, infrequent and big bets however it works fine for frequent same kind of bets.
I disagree with the second one. Risk of ruin invalidates any bet
Great videos!! Terrible graphics with annoying hand!! It’s like Annoying Orange.. love the content
Heads I win, Tails I also win
Learn to earn by Peter lynch
Alibaba ?
Dhandho means business
It's gujrati language
75% of cash to invest? I don't think this is a good model to follow. I'm not a fan of gambling.
Why u sold rain industries?
You also a investor ?????
Dandy ho
Audio was completely wacky for me.
In what way? Different from other videos?
@@TheSwedishInvestor sorry. I figured out the problem and it was on my end! Great videos!
"... otherwise you're speculating, not investing." There is no difference in that. Investing = speculating and it isn't bad!
Is your speculating as successful ad warren’s investing?
Or are you just a street rat with nothing to show for your Speculations?
🤡
lol the way you pronounce dhando is funny. only indians can understand this
Dhandho means Business in Gujarati language 😅