### 2 unstable releases

0.2.0 | Mar 12, 2023 |
---|---|

0.1.0 | Oct 28, 2022 |

#**1989** in Command line utilities

**MIT/Apache**

18KB

379 lines

# Dhandho

It's a cli tool build in rust, that helps calculate intrinsic value of an investment. The cli is inspired by the Mohnish Pabrai book "Dhandho Investor" which I still feel it's one of the best starting investing book.

## Install

`cargo`` install dhandho`

## Usage

`dhandho`` help`
`dhandho`` 0.2.0`
`Alexandru`` Olaru. ``<`alxolr@gmail.com`>`
`USAGE:`
`dhandho`` ``<`SUBCOMMAND`>`
`FLAGS:`
`-h,`` --`help Prints help information
`-V,`` --`version Prints version information
`SUBCOMMANDS:`
`cagr`` Calculated the compounded anual growth rate`
`help`` Prints this message or the help of the given subcommand(s`)
`intrinsic`` Computes the intrinsic value of an asset by providing different parameters`
`kelly`` Maximaze the gains by providing different assumptions. Ex:`` -`a 0.8,21.0

### dhandho cagr

CAGR Compounded anual growth rate.

###### Problem

You bought a Pokemn Trading card in 2012 at a price of 100$. In 2022 your card is listed on ebay at a price of 350$. Calculate the compounded anual growth rate.

###### Solution

Let's find out our input variables for this problem. We have the
*final value* = 350.0$
*initial value* = 100.0$
*investment period* = 10 years (2022 - 2012);

`dhandho`` cagr 350 100 10`
`0.1334616 ``#`` 13.34%
`

The anual compounded growth rate for the investment is **13.34%**.

#### dhandho intrinsic

Intrinsic value is the value of an asset based on the cash flows it generates.

We have a company which has a market cap of 1000$. The company has a cashflow growth rate of 10%. We will use a discount rate of 10% and a terminal multiple of 10x.

`dhandho`` intrinsic`` -`c 100` -`g 10,0.10` -`r 0.10` -`m 10
`year` `|` `fv` `|` `pv`` `
`------------------------------`
`0` `|` `0` `|` `100`` `
`1` `|` `110` `|` `100`` `
`2` `|` `121` `|` `100`` `
`3` `|` `133.1` `|` `100`` `
`4` `|` `146.41` `|` `99.99999`` `
`5` `|` `161.05101` `|` `100`` `
`6` `|` `177.15611` `|` `100`` `
`7` `|` `194.87173` `|` `100`` `
`8` `|` `214.35892` `|` `99.99999`` `
`9` `|` `235.79482` `|` `99.99999`` `
`10` `|` `259.3743` `|` `99.99999`` `
`TV` `|` `2593.743` `|` `999.99994`` `
`------------------------------`
`NPV` `|` `2000`` `

As we can see for the given requirements we have an intrinsic value of 2000$. The company is undervalued.

#### dhandho kelly

Kelly criterion is a formula that helps you maximize your gains by providing different assumptions.

Let's say you have a 55% chance of winning 2x your investment and a 45% chance of losing 1x your investment. The formula will help you calculate the optimal bet size.

`dhandho`` kelly`` -`a 0.55,2.0` -`a 0.45,-1.0` -`b 25000
`Bankroll:`` 25000`
`Kelly:`` 0.32500002`
`Amount`` to wagger: 8125.0005`

The optimal bet size is 32.5% of your investment. If you have a bankroll of 25000$, you should bet 8125$.

#### Dependencies

~3MB

~51K SLoC