FT : Mohnish Pabrai - There’s a market-beater in your corner shop

FT.com has a piece about Mohnish Pabrai and his book "The Dhandho Investor– The Low-Risk Value Method to High Returns" on June 22 2007.

I highlight some insightful points below:

• Find a bet with the minimum downside possible and only then start to look at possible returns.
  
• Patel business model and Lakshmi Mittal are good “Heads I win, tails I don’t lose much”examples.
• Make big bets (“Few Bets, Big Bets, Infrequent Bets”).
• Look for low risk, high uncertainty opportunities. (Like his recently interview on Bloomberg).
• Look for companies with a “wide economic moat”:
• Invest in simple businesses.
• “If it takes more than a short paragraph, there’s a fundamental problem.”
• “If it requires me to fire up Excel, it is a big red flag that strongly suggests that I ought to pass.”
  

Full article link.