mohnish pabrai

dhandho investor

  • invest in existing businesses

  • invest in simple businesses

  • invest in distressed businesses in distressed industries

  • invest in businesses with durable moats

  • few bets, big bets, and infrequent bets

  • fixate on arbitrage

  • margin of safety - always

  • invest in low-risk, high-uncertainty businesses

  • invest in the copycats rather than the innovators

investing commandments

  • only invest in companies that falls within your circle of competence

  • a company has to trade at a large enough discount to the underlying value to provide a significant margin of safety

  • shift away from cheap businesses toward an emphasis on better businesses

  • a company's financial statements should be clear and simple

rules

  • clone like crazy

  • hang out with people who are better than you

  • treat life as a game, not as a survival contest or a battle to the death

  • be in alignment with who you are; don't do what you don't want to do or what's not right for you

  • live by an inner scorecard; don't worry about what others think of you; don't be defined by external validation

  • take a simple idea and take it seriously

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