Dhandho Funds is an investment firm founded by Mohnish Pabrai. Dhandho applies core investing principles to offer unique investment options that are smarter for the long-term investor.
Dhandho's mission is to help you maximize your own personal wealth - even if you never invest in any of our products or services.
We believe the key to building wealth is to:
- Start investing early in life;
- Spend less than you earn and always be saving 5, 10 or 15% of what you earn;
- Maximize the use of tax-deferred vehicles like IRAs and 401(k)s;
- Invest in low-cost index funds.
We prefer that you consider our products as your investment vehicle, but even if you don't and you follow most of the above, we'd consider our mission a success.
We do not believe that one needs to invest in dozens of funds to achieve one's investment goals. Dhandho is likely to never offer more than a small number of investment vehicles. We hope to never bring products to market that we believe are not world-class. We cannot understand how an investment house can be intellectually honest and have dozens of funds and offerings. Yet this is unfortunately how this industry typically functions.
By providing dozens of offerings and strategies, other investment shops are able to constantly promote a new "flavor of the month." In all likelihood, they promote the fund that has had recent great performance. But, as soon as the performance of that fund wanes, predictably enough, it is no longer promoted and instead another fund is pushed, the one that now has recent good performance. Investors are prone to be misled by these ads and what they suggest, and as a result are inclined to keep switching among funds. We believe the end result of this strategy is likely to vastly underperform an alternate strategy of just sticking with the same simple, broadly diversified fund for the long haul.