Dhandho framework

I am halfway through the book: Dhandho investor. I liked it as the author shares stories about many businesses built on frugality, long bets, and arbitrage.  

The author talks about the Dhandho framework, and I felt like sharing. 

  • Invest in an existing business. 
  • Invest in a simple business.
  • Invest in distressed businesses in distressed industries. 
  • Invest in businesses with durable moats. 
  • Few bets, big bets, and infrequent bets.
  • Fixate on arbitrage. 
  • Margin of safety – always. 
  • Invest in low risk, high uncertainty businesses.
  • Invest in the copycats rather than the innovators.