 Good day, fellow investors! I recently reread the Dando investor from Monish Pabrai and I think this is really one of the best investment business books out there and that anyone, be the businessman, be it the stock market investor or any kind of investor at all, should read this book. And this is because the book focuses on some principles, key principles that are overlooked on Wall Street or in general business. Those principles are first patience, patience to learn, patience to find the proper investments. The second principle is focusing on risk, first patience and then focusing on risk so that you invest with low risk which amplifies the rewards to unlimited. If you invest with low risk or no risk where the possibility of permanent capital loss is very low, then the upside remains open, the downside is limited. And that is the focus of value investing and Monish Pabrai. And the third thing is related also to business but also related to investments. Your returns are related, are perfectly correlated with the underlying returns of the business. So therefore, A, investing has to focus on business and business has to focus on investing and risk. So the three pillars are patience, focusing on risk and business because you are investing in businesses and we should analyze businesses from a risk reward and patient perspective to become great investors. So let's see what the book is about and then I'll leave you to read it. The framework is very simple. The dendo framework, the dendos are Indian investors, Indian people with some special characteristics, very good characteristics. To summarize, you have to invest in existing businesses because the risk is low because the formula is already proven. Invest in simple businesses, easy to understand, okay? Then those simple businesses, existing businesses at some point in time become distressed due to the economy, due to too much leverage, who knows what. And then you are finding low risk investments because usually even if it is distressed over time, if you know how to assess risk, you can do very well. Because you're investing in businesses with durable modes, which means that whatever happens in the economy, there will be ups and downs. But the business will always be there. Few bets, big bets and infrequent bets. So when you find a low risk, unlimited reward opportunity, then it is the time to make a big bet. A lot of frequent bets, small bets increase your risks and lower your reward. Arbitrage, another opportunity also in business, read more about that. And then the focus is, of course, as we are focused on risk, margin of safety always, which leads to investing in low risk, high uncertainty businesses, which is something different than high risk businesses. Uncertainty and risk is something crucial to differentiate. I'll just show you four concepts of the book just to give you an idea of what the book is and why it is so important. Let's start with principle number one, low risk, high uncertainty. That's the difference that few understand. Low risk means that the downside is limited, but Wall Street usually doesn't know the difference between risk and uncertainty. Something uncertain is I will get a million dollar or 10 million dollars. That is uncertainty. Wall Street hates that. They want to know, will I get 10 or will I get one? However, that is not risk. You will get either one or 10 million. If you can buy that for one, that's a low risk because you cannot lose. And the upside is from one to 10 million, highly uncertain, but low risk. And when you can find that, that is something that is usually wrongly priced from the market. Further, something extremely important and something that I see a lot of young people missing, but some young people really have it. Knowledge, especially investing knowledge is cumulative. This means that over time, as you develop, as you learn, you constantly develop your mind. And that is why I'm doing these videos. I'm constantly growing, constantly developing, constantly managing my risk and reward. Third, limit your risks, ask smart questions. Is it a business I understand very well? All right, it should be in my circle of competence. Do I know the intrinsic value of the business today? And with a high degree of confidence, how it is likely to change over the next few years? Is the business priced at a large discount to intrinsic value today and in two to three years? Would I be willing to invest a large part of my net worth into this business? Is the downside minimal? Does the business have a mode and is it run by able and honest managers? Those are the keys to limit your risks. Invest only if all seven are yeses, if not do something else. If all are yeses, then to be concentrated is appropriate. So really have a low number of portfolio positions. Really outstanding investment opportunities are rare enough that you should really have a go at it when it comes around and put a little huge portion of your wealth into it, said Warren Buffett. Also, Charlie Munger, this idea of focused value investing has zero currency in academic circles. Investment managers don't feel they will make enough money this way. It's so foreign to them. So how to know when such a great idea that you should put a big part of your portfolio off your net worth into it? How to know when that idea comes around? You have to read such books that develop your mindset of being a patient long-term business value investor. Thank you for watching. Read the book. Enjoy the book. Let me know in the comments how you enjoyed the book and then we'll discuss something. Oh, by the way, he recommends another little book, the little book that beats the market. I have read it. I will go through it again and then make another video about this book and there are also stocks. And then we'll compare because it's here you invest in a lot of companies, you have a strategy, you have a formula and here is pure value investing. And then we'll compare the two and see where it leads and see at the end both are good strategies. But you have to find out which one is the best strategy for me personally or for you personally. Thank you for watching and I'll see you in the next video.