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Value investing2007

The Dhandho Investor

Mohnish Pabrai

Explains value investing in plain language: seek low-risk, high-upside opportunities with favorable odds and act only when the edge is clear.

Checklist

Do I have a rule to estimate value instead of forecasting short-term price?

Do I have a rule to demand a margin of safety?

Do I have a rule to prioritize avoiding permanent loss?

Do I have a rule to wait for price and quality to align?

Write down what would invalidate the thesis.

Set a review date before acting.