Dhandho Pdf

[Manric Hock]

The book starts off brilliantly. The first 4 chapters are illustrations of dhandho investing. The first chapter is about the success of Patels in the motel business in the US. How they came, saw, and conquered, from coast to coast, the business of inexpensive night stays for travellers. It gives a historic and geographic narrative (from Gujarat to Africa to US through 60s and 70s) of that incredible wealth building journey, from a socio-economic perspective. The second chapter is another motel success story, the third chapter is the story of Laxmi Mittal and his steel business, and the fourth chapter is about Richard Branson Virgin Atlantic. Yes, the last one kinda sticks out as an oddman, but I am willing to give the author a pass for making it interesting ?

Although the book starts off with entrepreneurial applications of the Dhandho philosophy, the rest of the book takes an investment angle to it. And talks about what principles to use to identify Dhandho opportunities in the stock market.

The most important investment principles espoused in this book are to invest in simple businesses that you understand, and ones that are trying to emulate success and not innovate. Such businesses have higher probability of success than complex businesses or front-runners, is the thesis.

And I have always thought innovation is the key to success in business. And while that may be true in an entrepreneurial venture that one launches into, it need not be true when it comes to investing or taking market bets. Such bets are best left to venture capitalists and PE companies, and not to John Rando investors like myself.

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