mohnish pabrai dhandho investor discounted cash flow

It's headed: I win, tails: I break even or win. Focus on arbitrage: And arbitrage is a situation during which there's a risk-free profit within the market after transaction costs. Bet big once you have the chances, you ought to sit still the remainder of the time.Ħ. The stock market is efficient but just for most of the time. bet heavily when the chances are overwhelmingly in your favor: Do not be afraid to bet big once you find good opportunities. Companies that don't fulfill this, might lose their profits rapidly, which may be a terrible situation for you because of the stock owner.ĥ. Buy businesses with a durable competitive advantage: Be careful of businesses that do not possess a competitive advantage over other actors within a common industry. Buy distressed businesses in distressed industries: 'Be fearful when others are greedy, and greedy when others are fearful.'Ĥ.

Otherwise, you're speculating, not investing.ģ. Will Facebook and Netflix exist 50 years from now? Who knows? Moreover, you've got to narrow you're investing right down to simple businesses, businesses that you simply understand. Will Coca-Cola and McDonald's exist 50 years from now? Well, most likely, we'll probably need to eat and drink even then. By simple businesses in industries with slow rate of change: According to Warren Buffett, change is that the enemy of investments. it is the best performing one over longer time frames, and it's less risky than creating your own startup.Ģ. Focus On buying existing businesses: The asset class that you're going to want to specialize in stocks. Nine principles that will guide you in making these heads - I win, tails - I do not lose much.ġ. It's about investing only in opportunities where we will achieve the subsequent asymmetry: Heads - I win. it's possible to get high returns with low risk, and this is often what Dhandho investing is all about. In the Dhandho Investor, a book was written by Mohnish Pabrai, you'll learn that this is often not necessarily the case.

Mohnish pabrai dhandho investor discounted cash flow