Mohnish Pabrai On Low-Risk Opportunities And The Recycling Sector

In his book, The Dhandho Investor: The Low–Risk Value Method to High Returns, Mohnish Pabrai coined an investment approach known as "Heads I win; Tails I don't lose much."

Read more hedge fund letters here

The principle behind this approach was relatively simple. Pabrai explained that he was only looking for securities with limited downside, but also potential for substantial returns. The idea being that even if one or two bets went wrong, profits on the rest of the holdings would more than compensate for the losses.

Low-Risk Opportunities

This mentality has defined Pabrai's style for years. In a Q&A session with MBA students at Columbia Business School, the...