Invest in distressed businesses in distressed industries. If you buy an asset at a steep discount to its underlying value, even if the future unfolds worse than expected, the odds of a permanent loss of capital are low. The products and services that have wide, sustainable moats around them are the ones that deliver rewards to investors. The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. In such circumstances, the odds are high that an investor can pick up assets at steep discounts to their underlying value. the very best time to buy a business is when its near-term future prospects are murky and the business is hated and unloved. The entrance strategy is actually more important than the exit strategy. Have the purchase price be so attractive that even a mediocre sale gives good results. All you need to do is replace capital with creative thinking and solutions. virtually any business that you want to start can be gotten off the ground with minimal capital. Dhandho is thus best described as endeavors that create wealth while taking virtually no risk. Dhandho is all about the minimization of risk while maximizing the reward. We have all been taught that earning high rates of return requires taking on greater risks. The street translation of Dhandho is simply "business". Dhan- dho, literally translated, means "endeavors that create wealth". Dhan comes from the Sanskrit root word Dhana meaning wealth. And while I think the book is a good intro to value investing, there isn't much new in it if you are already familiar with the basic ideas from other value investing books or Warren Buffett's annual letters.ĭhandho (pronounced dhun-doe) is a Gujarati word. They were all about successful entrepreneurs whereas the book is mainly about investing in the stock market. I also found the stories about Dhandho investors a bit misleading. I found The Dhandho Investor an average book with too much repetition. 
The Dhandho Investor is a book about value investing.
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