Pabrai, M. (2007). The Dhandho investor: the low-risk value method to high returns. Hoboken, NJ: John Wiley.
Pabrai provides a rational approach to long-term investing that reflects the reality of risk and return. It helps dispel the popular assumption that adequate returns need result from inordinate risk. The key, of course, is being able to accurately estimate or quantify risk (loss) and the degree of hazard associated with the relevant perils.
The general approach toward investing presented in this book differs somewhat from popular perceptions of risk and return.
Investment principles outlined in the book follow, more or less, those practiced and taught by Warren Buffett and other long-term, value investors.
Information and case studies in the book address investing from two perspectives: entrepreneur and passive investor.
Questions to address:
What did you find in the book that differed significantly from your perceptions of investing?
What did you find in the book that you perceive to be unrealistic or impractical?
What did you find in the book that you might apply to your own investing?