The Dhandho Investor: The Low - Risk Value Method to High Returns

Description

This book starts with a few chapters of very interesting stories on the risk-return skills of successful entrepreneurs. The next few chapters assimilate the astuteness of these entrepreneurs with value investing wisdom of the likes of Warren Buffet, et al. The rest of the book is rather plain. Of course, I was not expecting the author to reveal his secret sauce for successful investing, but I was expecting some guidance on the qualitative assessment of prospective investments. I had hoped for an introductory framework for value investing and quantitative approaches to investment choices. I was disappointed with nothing more than diluted discussions on cash flow models, Kelly criterion for betting, and a few other tools for the investor's arsenal. The book also fails to explain how to identify the context and practicality of these tools. Some of the historical approaches for value investing discussed in this book no longer easily relate to the today's capital markets -- markets characterized by high volatility, pricey valuations, and an era of slower growth. Investing is much more involved, especially for an individual investor. This book is nothing more than a general reiteration of value investing principles with good case studies. The book is an easy read and the stories of successful entrepreneurs are inspiring. Nevertheless, it fails to connect the ideas to everyday investing choices.