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# 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

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```
Be patient and selective, saying no to almost everything. Exploit the market’s bipolar mood swings. Buy stocks at a big discount to their underlying value. Stay within your circle of competence. Avoid anything too hard. Make a small number of mispriced bets with minimal downside and significant upside.
```

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## 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