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.

Victim

You have to get over the victim mindset. You have to stop blaming others for your failures. You and feeling that will make you move and take steps forward.

No one can teach you how to be happy. You have to have your rules and habits to get into happiness.

Lastly, get over the status game and comparing your life with others. Stop competing and falling into the wrong comparison. You have to be authentic and be who you are.

2023

2023 is waiting. How bad is it going to be? Are we going back into lockdown? I understand we are already fucked economically, and healthcare globally has given up long back.

What more do we need in 2023 other than sailing in it without dying?

paint

We have painted ourselves with pedigree, caste, color, and nationality. Our existence is painted self.

Who are we? Is it the reality we make choices and take decisions in our life or the painted monster “me” basking in the glory?

Some realize this in their later life about this painting, while many others die living a painted life.

change

Change has to come from the inside. You can teach someone how to swim; you cannot cross the lake replacing.

There are situations in our life where we think of helping our friends and loved ones. We end up giving them pep talks and teachings. We feel good, hoping they will get better by changing moods/lifestyles.

Most of the time, people don’t need you and your philosophy of change. They love their current life, pain, and misery.

regret

Want to live a sane life or die in peace: one way to do this is to avoid regrets. Don’t let your past decisions come and haunt you. Do what it takes now. Don’t leave things unfinished for the future.

Our thoughts appear like recorded cassettes of a tape recorder, and memory will keep appearing. Be strong enough to bear it with a strong heart else the wind of regret will kill you every moment.

Optimism

Optimism is a way of life, like a virtue.
We have the option to live like a scared lamb, worried and pessimist about everything, or live like a radical optimist.

The world is falling apart.
Our media keeps reminding us how miserable the world is.
We can keep living in fear or worry.

There is another breed of a radical optimist.
They see the world through a different lens, where positivity trumps negativity.

Our time on this planet is limited: the choice is ours to live a life like a lamb or roaring tiger.

cure

What is the cure for your crib, complain and itch? In all instances, it is about you taking the challenge. It is about going against all the odds and fixing things your way.

We can die complaining about our relationships, work environment, or nth world problems. Most of the time does not focus on the solution or cure.

Elevate

A high-growth startup is about shipping things quickly, iterating, and building multiple product lines. They end up hiring senior talents and paying above-market salaries. That’s how VC money gets burnt.

A young, fresh-out-of-college kid continues being a fresher because the top dogs are leaving and joining. The growth is limited, and not all complaint about it as less responsibility and a lot of money.

There is a crazy bunch who would like to take more responsibility and lead from the front and should be elevated and given responsibility.

divide

The Internet has shrunk the divide.
We are all in equilibrium.
The information, knowledge, or content are all available on a single pipe.

It does not matter which part of the world you are in, the US, Africa or remote India. We all have the same data pipe.

It’s on us how to consume and make best of the information. In short, most of our time will be in curation and our focused approach to attain the knowledge.