Skip to Content
Stock Strategist

Take-Home Lessons on Value Investing

This book nicely presents some of the best principles of this investing philosophy.

Mentioned: , , , ,

Do you want greater investment returns? You need to assume more risk. So says academic finance, which rests almost entirely on the principle that reward necessarily entails and is commensurate with risk. Indeed this assumption has at least an element of truth to it, inasmuch as stocks are riskier than bonds, and also tend to deliver greater returns than bonds over longer (say, multiyear) periods of time.

Hedge fund manager and author of "The Dhandho Investor," Mohnish Pabrai, begs to differ with the academics. Like so many value investors who've come before him (and to whom he's duly deferential), Pabrai provides a framework for selecting unloved, overlooked, forgotten, and seemingly boring businesses that are selling at cheap enough prices to minimize risk and maximize returns.

To view this article, become a Morningstar Basic member.

Register for Free

John Coumarianos has a position in the following securities mentioned above: BRK.B. Find out about Morningstar’s editorial policies.