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THE DHANDHO INVESTOR AUDIOBOOK FULL
THE DHANDHO INVESTOR AUDIOBOOK FREE

Assume that first option is 80%, the second is 10%, the third is 10%. These three outcomes cover virtually the entire range of possibilities. Mr Patel can not make the payments and bank acquired his Mortals and Mr Patel loses his investment. Now, we have bond that pays zero coupon for first five years, then 200 percent for five years and final interest payment of 900 percent which equates to a seven bagger – CAGR more than 40%.ģ.The economy goes into serve recession and business plummets. The motel is sold in year 10 for the purchase price.

THE DHANDHO INVESTOR AUDIOBOOK FREE

Patel has a zero return on his investments for five years then start making $10,000 year in excess free cash flow as economy recovers. The economy goes into serve recession and business plummets for several years. This equates to a 21 bagger- CAGR over 50%.Ģ. This is like a bond pays 300 percent interest a year with final interest payment in year 10 of 900 percent. Because we have added $5,000 which loan was taken from friend but which was repaid within 6 months so total expenses now are $25,000 from which he needs to make payment for Bank Loan Interest Which is $5,000 and Principal Payment which is $5,000 so deduct total $10,000 from $25,000, which Equates to $15,000 which Free Cash Flow. If we look at cost structure of Mortal Total Expenses which mentioned above was $30,000. Let’s this continuous for just 10 years and business is sold for the same price as it was bought ($50,000).

The $5000 investment yield an annualized rate of return of 400%.

“Leverage is the reason some people become rich and others do not become rich” kiyosaki frequently says that Leverage is the way to maximize Wealth and Here, Dahyabhai Patel used leverage strategy to earn returns like 400% Returns. He started His business by taking loan from friend which Is $5,000 so, Return on Equity is Infinite because he has not invested single penny from his account.Īs my Favourite Role Model, Mr. $20,000 annual returns ($20,000 Annual Returns from the investment – $15,000 in cash flow and $5,000 in principal Repayment). The Annual Return on that $5,000 of invested capital is a stunning 400% returns. Calculations are as follows:Įstimation of Profits from 20-Room Mortals:

THE DHANDHO INVESTOR AUDIOBOOK FULL

As a result, he has higher occupancy and is making Super-normal Profits.ĭahyabhai takes full time job then According to him, calculated his annual salary is $6,000 and Annual Living Expenses which is about $5,000 per year but if he buy 20- room mortal at distressed price of $50,000 with about $5,000 in cash which is borrowed from his friend and rest financed by banks still he is going to make 400% Returns. To save all this expenses he decided that not to hire any people, his family will do all this work which helps dahyabhai to achieved Lowest operating cost for Mortals and also enables to offer lowest nightly rate.

Have to provide laundry services, plumbing services, maid, electrician Etc.

To run the mortal it needs following things to be done which are as follows: To settle his family, he need to pay rent or to pay mortgage on his house but 20- room mortal saves his rent cost. How did Patels people achieved lowest operating cost among their peers?ĭahyabhai came in USA in 1970s, he has seen 20- room mortal on sale at what appears to be very cheap and start thinking. At same time, Patel people see opportunity in motel businesses. Many Small motels were foreclosed by banks or went on sales at distressed prices. In recession period, we see hug drops in occupancy. Why did patels who entered the United States go into the motel business?Īnswer is Generally, Motels are heavily dependent on discretionary spending. We have seen that low risk, High return approach to business taken by patels. Dhan-dho, literally translated, means “endeavors that Create Wealth.” Dhandho is all about the minimization of risk while maximizing the rewards. Dhandho is a Gujarati word in that Dhan Comes from the Sanskrit root word Dhana meaning wealth. It is very amazing that over half of all the motels in the entire country are owned and operated by patels. I am going to share some insights about Patel’s businesses and strategies and how does their strategies can be applied in stock market to achieve outstanding Returns.

I got amazing book called The dhandho Investor written by Mohnish Parbai. Many of my friends are patel those are Super rich and I always dreaming and try to find out Business strategies they applying in their business which made them super rich.