tag:blogger.com,1999:blog-7294165939647321702.post5426332861175965386..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: The Dhandho Investor: Chapter 2Saj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7294165939647321702.post-27731524800701677262009-08-21T09:31:49.280-04:002009-08-21T09:31:49.280-04:00I dont think Pabrai is necessarily talking about t...I dont think Pabrai is necessarily talking about taking leveraged risks though this example might seem so. <br /><br />The theme is to make fewer bets and bet big whenever u come across a great opportunity. Like Buffett's Amex bet where he put nearly 40% of the partnerships portfolio on a single stock.Ninad Kunderhttps://www.blogger.com/profile/14275940021296930028noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-57152525073683714862009-08-17T15:07:26.915-04:002009-08-17T15:07:26.915-04:00Hi Anon,
You're right that putting your house...Hi Anon,<br /><br />You're right that putting your house up to buy a business doesn't sound like a low-risk venture. In the book, Pabrai does take some time to discuss why the hotel still offered excellent returns versus the risk involved.Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-79194657201626507782009-08-15T09:23:37.030-04:002009-08-15T09:23:37.030-04:00This doesn't make much sense to me.. the guy p...This doesn't make much sense to me.. the guy put up his house to buy a hotel.. there are numerous entrepreneurs who engage in similar, or even higher levels of risk taking.. there's always a finite probability of success in such a venture and it appears he was successful..<br /><br />Secondly, the phrase he's throwing around is nothing other than the principle of risk-adjusted returns, so nothing new there.. <br /><br />He seems to be advocating leveraged risk-taking, which is fine in moderation, but sends the wrong signal when you put your own home on the bargaining tableAnonymousnoreply@blogger.com