# 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 {% code overflow="wrap" %} ``` 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. ``` {% endcode %} ## 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 --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://um.fz.ax/investing/dhandho-investor.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.