Prior to beginning work on this assignment, read Chapters 5 and 6 in the Dhandho Investor text.
Value investor Mohnish Pabrai (2007) wrote the Dhandho Investor: The Low-Risk Value Method to High Returns. Pabrai sums up the Dhandho approach as heads, I win; tails, I don’t lose much! Basically, with investing you are right 60% of the time, while having to bear a calculated risk in approximately 40% of the instances.
You have begun reading Pabrai’s book. He states that “the lower the price you pay relative to the probable intrinsic value of the business, the higher your returns will likely be if you’re right and the lower your losses will likely be if you’re wrong” (Pabrai, 2007, p. 2).
For this assignment,
Part 1: Please focus on the company of your choice (the one you are with right now, or one you are familiar with):
Explain the essence of Pabrai’s Dhandho Framework in reference to the two above listed quotes.
Analyze the real-life business examples from the chosen company.Critique this company’s leadership in terms of strategic initiatives.
Analyze how the leadership or CEO of the company promotes long-term value creation.
Evaluate how decisions about people and money impact this organization’s competitive position.
Summarize capital allocation practices for this company.
Part 2: Dhandho explains a low-risk, high-return approach to business. Dhandho is all about the minimization of risk while maximizing the reward. It means the upside is much larger than the downside, which is the essence of value investing. Address the following:
Evaluate the core of this belief.
Summarize the evidence Pabrai provides in the book to solidify this position.
Justify this approach as valid or invalid with the company you researched.
Explain your reasoning.
The Dhando Approach paper,
Must be three to four double-spaced pages in length (not including title and references pages) and formatted according to APA StyleLinks to an external site. as outlined in the Writing Center’s APA Formatting for Microsoft WordLinks to an external site. resource.
Must include a separate title page with the following:Title of paper in bold fontSpace should appear between the title and the rest of the information on the title page.
Student’s name
Name of institution (The University of Arizona Global Campus)
Course name and number
Instructor’s name
Due date
Must utilize academic voice. See the Academic VoiceLinks to an external site. resource for additional guidance.
Must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.For assistance on writing Introductions & ConclusionsLinks to an external site. and Writing a Thesis StatementLinks to an external site., refer to the Writing Center resources.
Must use at least two scholarly, peer-reviewed, or credible sources in addition to the course text.The Scholarly, Peer-Reviewed, and Other Credible SourcesLinks to an external site. table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source.
To assist you in completing the research required for this assignment, view the Quick and Easy Library ResearchLinks to an external site. tutorial, which introduces the University of Arizona Global Campus Library and the research process, and provides some library search tips.
Must document any information used from sources in APA Style as outlined in the Writing Center’s APA: Citing Within Your PaperLinks to an external site. guide.
Must include a separate references page that is formatted according to APA Style as outlined in the Writing Center. See the APA: Formatting Your References ListLinks to an external site. resource in the Writing Center for specifications.
Carefully review the Grading RubricLinks to an external site. for the criteria that will be used to evaluate your assignment.
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