Mohnish pabrai dhandho investor
The larger the margin of safety, the lower the risk of loss on capital.
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Benjamin Graham once referred to this idea as the margin of safety. Buy businesses at large discounts to its intrinsic value.My point is to be careful with blanket application of principles) For example, we might classify low-risk companies that focus on excellent customer service as innovators. (Remember that this principle is in reference to high-risk ventures.
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These companies tend to carry lower risk and yield greater rewards. By contrast, it is easier to choose good companies that can execute, lift and scale a combination of existing ideas. Pabrai believes that finding and investing in excellent innovators is difficult. Companies with durable and widening advantages can generate better returns on invested capital over the long term. This is a reminder to focus not only on company growth, but on the durability and magnitude of its competitive advantage.
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In a straightforward and accessible manner, The Dhandho Investor lays out the powerful framework of value investing. A comprehensive value investing framework for the individual investor