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Strategic Investment Principles
Invest in businesses during times of uncertainty and when they are unloved to acquire assets at a discount. Choose businesses with a sustainable competitive advantage, such as lower costs or unique resources. Capitalize heavily on favorable odds for significant gains and minimal losses.
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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