"Dhando!"

FORMER INSIDER: $15.4 BILLION DEMAND WAVE
COULD HIT THESE SEVEN COMPANIES

A former star broker at one of Wall Street's most powerful
firms – one with over $500 billion in assets – now believes
a mammoth wave of "buy" orders worth up to $15.4 BILLION
DOLLARS could drive seven stocks through the roof, starting
just days from now.

Click below for a full, free report on his research, and
just how and why this may be the biggest money-making
opportunity you'll see this year.

http://www.isecureonline.com/Reports/MAL/EMALG610/

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"Dhando!"
By Chris Mayer

This past month, I journeyed to Los Angeles for a unique
kind of conference. It was called the Value Investing
Congress.

The gathering featured some of the most successful
cheapskates of the investment world. These are the guys who
don't like to pay much for anything, who are usually
bearish on most things and who like digging around in the
dumpsters and sewers of finance, trolling around for
overlooked goodies. Basically, a variety of top-performing
investors offered up insights and ideas over two days to a
packed audience.

My favorite speaker was Mohnish Pabrai, and not because I
was so interested in his stock pick (it was Berkshire
Hathaway, which, by the way, was probably the most talked-
about stock at the conference. Everybody seemed to think it
was a bargain). I enjoyed Pabrai's fascinating and
insightful story about Mr. B. U. Patel.

B. U. Patel is the founder and CEO of Tarsadia Hotels and
probably the richest South Asian in Southern California. He
started with one 20-room motel in Anaheim, California and
eventually grew to over 4,400 rooms across America –
becoming one of the dominant motel operators.

Apparently, the Patels were refugees from East Africa. They
had a strong entrepreneurial drive and a smart sense about
value. They strived to put themselves in situations where
they could make a lot or lose a little. Such situations
would cause the Patels to exclaim, "Dhando!" Literally
translated, it means "business." But the connotation was "a
very good deal." Or, as Pabrai put it, "Heads I win, tails
I don't lose much."

Anyway, the Patels would buy a motel for little money down,
move their clan in and fire all the workers. The family
then ran the motel and dropped prices. In a short amount of
time they would fill up the motel and earn lots of cash.
Then, they would take their money and do it again…and again
and again. Each time, they re-invested in new motels in
similar situations.

In time, they became the dominant motel operator in the
country. About 1/3rd of all U.S. motels are operated by
Patels – that's about a $40 billion enterprise. Pabrai's
point in telling this story was to show how they only
looked for situations where they could make a lot and lose
a little.

Mohnish Pabrai created a list of what he calls the Dhando
framework, which outlines the Patel philosophy. It is a
nice little model for investors.

Most of these principles are self-evident. A couple of them
could use a little explaining. Number 5 simply means that
the Patels are looking to take advantage of relatively easy
opportunities. Like their motel operation, it was a simple
matter to dismiss all the existing workers – which
represented huge cost savings – and replace them with
family members. Eventually, this gap closed as the Patels
themselves got bigger and as they ran into competition that
copied their methods.

Number 8 is interesting, too. Pabrai quoted the work of
Amar Bhide, who found that most Inc. 500 Entrepreneurs had
adopted – or appropriated – their central business idea
from a former employer – and many times the employer was
not even interested in the idea.

Pabrai has a very solid track record, beating all the major
indices and 99% of all funds since its inception. He runs a
tight, portfolio of only about a dozen names. He makes big
bets, holds on to his stocks and "takes naps in the
afternoon." Most hedge fund managers spend the afternoon
sweating, not sleeping. For those interested, I highly
recommend his book Mosaic: Perspectives on Investing. It is
a short collection of insightful essays about investing.
Well worth it.

Stock

Value (in millions)

Ipsco Inc.

Harvest Nat Res Inc

Bio Scrip, Inc.

Fairfax Finl Holdings Ltd

Berkshire Hathaway

Universal Stainless & Alloy

Genco Shipping & Trading

Covanta Holding

ABX Air, Inc

Pinnacle Airlines Corp.

Star Gas Partners LP

Dr. Reddys Labs Ltd

$59,928

$32,677

$23,994

$22,387

$21,434

$16,157

$14,991

$14,918

$14,216

$11,521

$7,610

$6,371

Of these names, he's added Genco Shipping & Trading and ABX
Air in the most recent quarter.

Genco Shipping & Trading is a dry bulk carrier, which
transports things like coal, grain, steel and iron ore.
These shippers all look pretty cheap. But there is a
reason. Genco and its ilk operate in volatile markets.
Shipping rates change dramatically based on small changes
in demand and supply. Hence, the earnings of these
companies are tough to predict and will probably always
carry low multiples in the market.

However, Pabrai probably sees this as a global play on
growth in China and India, in an industry that is facing
consolidation. The business is highly fragmented. Plus, in
Genco, you have a relatively new fleet, with experienced
management and a good financial condition. It's one to keep
an eye on. The ticker is GSTL and it's about $17 as I
write.

ABX Air is an airfreight company. The all-cargo airline has
a fleet of about 100 planes. Like Genco, ABX appears
statistically cheap. The company also generates good cash
flow and generates a healthy return on equity. Pabrai seems
to like the transportation angle. In any event, ABX is
another good one to watch. The ticker is ABXA. As I write,
it's trading for about $7 per share.

These two companies operate in industries that often elicit
more yawns than cheers. But if Pabrai's investment acumen
is on target once again, the buyers of these stocks might
someday get the urge to shout, ""Dhando!"

[Joel's Note: If you enjoy expensive stocks laden with risk
and far-flung promises, the Capital & Crisis is not the
investment service for you. While others conjure up snake
oils and market beating "tarot solutions," Rude favorite,
Chris Mayer, is doing the hard work and getting his readers
ahead. And, let's be honest here, a little respite from the
market volatility with some healthy, fundamentally sounds
bargains never hurt anyone. Check out Chris's latest report
here to find out if this service is right for you.

This stock is seriously the ONLY stock you will need to own
over the next 10 years.

In fact, it's looking to be the next Berkshire Hathaway.
Buffett already has over $300 million in this
company...it's one of the biggest in his portfolio, even
though it's hardly a household name!