Reddit reviews The Dhandho Investor: The Low-Risk Value Method to High Returns
We found 4 Reddit comments about The Dhandho Investor: The Low-Risk Value Method to High Returns. Here are the top ones, ranked by their Reddit score.
John Wiley Sons
I see that Intelligent Investor by Graham has already been posted but that's certainly a good one. However it can be a bit dry for most readers and if you would prefer something a bit fresher I would read Deep Value by Toby Carlisle. He discusses and critiques Graham's teachings along with the strategies of other notable value investors such as Buffet, Icahn, Greenblatt and many others all in a more modern tone. It's been the bible for my own value investing strategies.
Other books to look into are:
https://www.amazon.com/Dhandho-Investor-Low-Risk-Method-Returns/dp/047004389X
Mohnish is the most influential thought leader in the area of value investing today aside from aside from Warren Buffet and Charlie Munger.
This is evidenced in his recent presentation to the students of the University of California at Irvine:
https://www.youtube.com/watch?v=jfxOvdiac94
Mohnish lays out his methodology in the bestselling book “The Dhando Investor.” The book is steeped in the Adviata Vedanta philosophy of India that is the precursor to that of Guatama Buddha.
https://www.amazon.com/Dhandho-Investor-Low-Risk-Method-Returns/dp/047004389X?ie=UTF8&*Version*=1&*entries*=0
The book explains how Mohnish was able to replicate the methods of Warren Buffett and Charlie Munger by simply reading all of the letters to shareholders and thinking through the methodology. This is the exact opposite of the tactic that most investors take of “not thinking at all” as investors seek ham-fisted diversification through indexes as espoused by modern portfolio theory. Mohnish like Buffett shuns complicated analysis. He passes on complicated investments. He says “If you can’t do the math in your head it should be an automatic pass.”
Firstly, you are right to be paranoid. DO NOT enlist the services of a financial advisor. Their performance almost never justifies their fees in the long run. Also beware of high expense ratio mutual funds. Below are two good options. One requires some study (but perhaps less than you may fear). The second is very easy and hands-off.
Option 1: Sit in cash and learn about investing, then invest intelligently. *see details below
Option 2: If you don't want to take a bit of time to learn how to invest, open a brokerage account (Fidelity and Vanguard are both good). Put 80% of the money in a low expense-ratio S&P ETF (such as IVV or SPY) and 20% in a low expense-ratio short-term bond ETF (BSV). The S&P ETF will simply perform as the overall US economy does over the long term. The bond ETF acts as a sort of 'ballast' for the equities (S&P / stock market) portion of your investment. As opposed to long-term bond funds/ETFs, short-term bonds are less interest-rate sensitive. This will do better than most mutual funds long term. https://www.youtube.com/watch?v=mOS4wAsBnvM
With either option, you should be contributing to an IRA to the maximum allowed amount every year. Whether you use the money yourself or give it away, you will pay less taxes.
*Resources for learning to invest wisely (the much better option!):
https://www.ruleoneinvesting.com/podcast/
https://www.amazon.com/Essays-Warren-Buffett-Lessons-Corporate/dp/1611637589/ref=pd_sim_14_4?_encoding=UTF8&pd_rd_i=1611637589&pd_rd_r=49H5XWEBE322MGN21T9A&pd_rd_w=4BiWA&pd_rd_wg=h8HSo&psc=1&refRID=49H5XWEBE322MGN21T9A
https://www.amazon.com/Dhandho-Investor-Low-Risk-Method-Returns/dp/047004389X/ref=sr_1_1?ie=UTF8&qid=1524885124&sr=8-1&keywords=the+dhandho+investor
https://www.amazon.com/Intelligent-Investor-Definitive-Investing-Essentials/dp/0060555661/ref=sr_1_1?ie=UTF8&qid=1524885145&sr=8-1&keywords=the+intelligent+investor+by+benjamin+graham