The Dhandho Investor
Module Units
- 1. Introduction
- 2. Patel Motel Dhandho
- 3. Manilal Dhando
- 4. Virgin Dhandho
- 5. Mittal Dhandho
- 6. The Dhandho Framework
- 7. Dhandho101: Invest in Existing Businesses
- 8. Dhandho 102: Invest in Simple Businesses
- 9. Dhandho 201: Invest in Distressed Businesses in Distressed Industries
- 10. Dhandho 202: Invest in Businesses with Durable Moats
- 11. Dhandho 301: Few Bets, Big Bets, Infrequent Bets
- 12. Dhandho 302: Fixate on Arbitrage
- 13. Dhandho 401: Margin of Safety—Always!
- 14. Dhandho 402: Invest in Low-Risk, High-Uncertainty Businesses
- 15. Dhandho 403: Invest in the Copycats rather than the Innovators
- 16. Abhimanyu’s Dilemma—The Art of Selling
- 17. To Index or Not to Index—That Is the Question
- 18. Arjuna’s Focus: Investing Lessons from a Great Warrior
- 19. Conclusion
Arjuna’s Focus: Investing Lessons from a Great Warrior
In the final chapter, the author begins with a fable that demonstrates the importance of concentrating on companies within one's circle of competence. Investors can pick and choose from thousands of companies (both private and public ), real estate, treasuries, currencies, options, mutual funds, hedge funds, commodities and other investments. If the investor tries his hands on all of them, he is unlikely to do well. However, the investor increases his odds by focusing on simple and understandable businesses.
He advises investors to look only for opportunities that fulfil this criterion. Once an opportunity arises, it should be studied, and examined closely and it should be made sure that it's trading at a discount. "Do not make the fatal mistake of looking at five businesses at once," he argues. One should rivet his eyes on one company at a time, and only after completing the analysis should he be ready to look at other companies within its circle of competence.
While the book attempts to educate readers on how to maximize their wealth, the author asserts that there is more to life than wealth. A life directed only on boosting material wealth is not fully rewarding. He concludes the book by persuading those who find success in Dhandho to invest in offering some of their wealth to those who are not so blessed.
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