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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.

Mental models

Model 1

Use this model to estimate value instead of forecasting short-term price.

Model 2

Use this model to demand a margin of safety.

Model 3

Use this model to prioritize avoiding permanent loss.

Model 4

Use this model to wait for price and quality to align.