In a straightforward and accessible manner, The Dhandho Investor lays out the powerful framework of value investing. Written with the intelligent individual investor in mind, this comprehensive guide distills the Dhandho capital allocation framework of the business savvy Patels from India and presents how they can be applied successfully to the stock market. The Dhandho method expands on the groundbreaking principles of value investing expounded by Benjamin Graham, Warren Buffett, and Charlie Munger. Readers will be introduced to important value investing concepts such as Heads, I win! Tails, I don't lose that much, Few Bets, Big Bets, Infrequent Bets, Abhimanyu's dilemma, and a detailed treatise on using the Kelly Formula to invest in undervalued stocks. Using a light, entertaining style, Pabrai lays out the Dhandho framework in an easy-to-use format. Any investor who adopts the framework is bound to improve on results and soundly beat the markets and most professionals. A comprehensive value investing framework for the individual investor In a straightforward and accessible manner, The Dhandho Investor lays out the powerful framework of value investing. Acknowledgments ix Patel Motel Dhandho 1(14) Manilal Dhandho 15(8) Virgin Dhandho 23(6) Mittal Dhandho 29(6) The Dhandho Framework 35(12) Dhandho 101: Invest in Existing Businesses 47(4) Dhandho 102: Invest in Simple Businesses 51(8) Dhandho 201: Invest in Distressed Businesses in Distressed Industries 59(6) Dhandho 202: Invest in Businesses with Durable Moats 65(6) Dhandho 301: Few Bets, Big Bets, Infrequent Bets 71(14) Dhandho 302: Fixate on Arbitrage 85(14) Dhandho 401: Margin of Safety---Always! 99(308) Dhandho 402: Invest in Low-Risk, High-Uncertainty Businesses 407 Dhandho 403: Invest in the Copycats rather than the Innovators 131(16) Abhimanyu's Dilemma---The Art of Selling 147(22) To Index or Not to Index---That Is the Question 169(10) Arjuna's Focus: Investing Lessons from a Great Warrior 179(6) Notes 185(8) Index 193