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The Kelly Formula
Monice: The Kelly formula calculates the optimal fraction of your money that should be invested into a favorable bet. Monice tells us the story of Ed Thorpe who wrote the book Beat the Dealer where he was able to gain an edge in Blackjack. If you own a business that's been on a bumpy ride from pandemic to inflation, I'm sure you could use a break. GetRefunds.com can help you too.
On today’s episode, Clay reviews Mohnish Pabrai’s book, The Dhandho Investor. Mohnish is one of our very favorite investors to study here at TIP as we’ve interviewed him for the podcast multiple times in the past. Since its inception in 2000, Mohnish’s flagship fund has achieved a return of 781% to his investors net of fees versus 378% for the S&P 500.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
05:19 -The story of the Patels, who went from owning nothing in the US, to owning over 50% of the motel industry.
11:33 - The 9 Dhandho investment principles.
14:24 - How Dhandho investors are able to earn outsized returns with minimal risk.
25:09 - How to identify bargains in the market.
32:17 - The relationship between investing and gambling.
39:17 - Clay’s analysis on Mohnish’s largest US equity holding today.
49:46 - Mohnish’s investing checklist he uses prior to purchasing a company.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
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