And there are rules that might work for a matured markets in EU and US but those same rule need be true for the Indian market. Although the price is little steep but believe me it is worth every rupee.
There is a lot of detailed analysis for the expert investor as well. This book has it all be it financial analysis to individual sector analysis and even the least covered and one of the most important side of investing i. Consequently, I am left with stocks with highestconviction If you have stocks in your portfolio, you become veryfocused. But somehow he forgets to mention that he entered them post when the cycle for cheap credit started and emerging economies have been flush with cheap money ever since.
On the other hand, the concern is that the stock price may continue to surge after sale, resulting in a missed opportunity. Basant Maheshwari has homed in on a top-quality micro-cap which has all the qualities that one seeks in a winning stock. In addition this book provides a really good sense of how business works and how to pick winning stocks for your portfolio.
Basant offers valuable practical advice on a number of issues. Most investors me included feel jittery of buying such a stock in the fear that all the juice has already been drained out.
Another dilemma that investors face is whether to have a concentrated portfolio or a diversified portfolio. By default most investors end up with a highly diversified portfolio because of their lack of confidence in any particular stock. Here again, Basant conducts a brilliant analysis of the merits and demerits of a concentrated portfolio vs.
Basant also gave a talk see embedded video where he elaborated on the theme of a concentrated portfolio. He emphasized that the one important aspect investors of a concentrated portfolio had to ensure was that all the stocks are of secular growth companies and not cyclical and are leaders in their sector. Basant also warns against price anchoring that investors suffer from.
Basant has explained what to look for in a winning stock with practical examples e. He also refers to other important aspects like integrity and ability of the management, the extent of debt, market share, sector leadership, ROE, cash flows, operating history etc that investors have to watch out for.
There is also a section on how companies manipulate their accounts. The part on the stocks to avoid e. Basant also advices that investors should hold and stay put with secular large cap compounding stocks. Basant is very candid about the several mistakes that he made of buying wrong stocks and not getting out in time. A vivid and graphic description of each experience is given. The lessons that he learnt from these mistakes of omission and commission are nicely spelt out.
I always thought that only traders used borrowed funds for short term punts. Basant has given a convincing explanation on how borrowed funds can super-charge your portfolio.
However, as is evident, this is not for everyone. You need clear-cut and decisive thinking to be able to take advantage of leverage. Besides this, I found that maybe not intentionally the author does not discuss the downside risk for HFCs. As many might know that the author has investments in a few of the HFCs which have done very well.
They sort of appear in the book time and again. But somehow he forgets to mention that he entered them post when the cycle for cheap credit started and emerging economies have been flush with cheap money ever since. As now the cycle has started to reverse after a year gap and the raw material that aided this phenomenal growth is bound to become expensive and hence the downside risk.
The point is the author discusses at length about problems with a large number of sector and also his own short-sightedness and his bets that turned sour. Having said that, the author has tried his best to make the reader understand that the Indian market is unique.
And there are rules that might work for a matured markets in EU and US but those same rule need be true for the Indian market. I enjoyed reading this book immensely and would recommend it to anyone who would like to gain an understanding of an emerging market and an investor's journey from the days of Indian economic liberalisation right till the end of taper tantrum.
Feb 17, Kailash Pandey rated it really liked it. This book is a must read for value investing learning from an Indian stock investor perspective. Maheshwari but then at the end of the day, what is important is to make money and he had achieved it in actually a well calculated and calibrated manner.
Apr 01, Abhishek Shekhar rated it really liked it. Must read for investors and analysts! Jul 03, Pravin Sharma rated it it was amazing. A good 'on the ground' perspective on Indian public markets and how you can make money from them. May 14, Pradeep Kumar rated it really liked it. In this books has given insights of his learning in Indian stock market journey.
His journey of from to till the book written His style of choosing stock was explained. Explains about world of investing, trends, financial analysis, buy and sell strategy, sector analysis, help on portfolio building, and check list. Most importantly I loved the following 1. Financial independence, If you achieve 50 times to annual expense, you are independent. Sep 05, Duraimurugan rated it did not like it.
Worst book I have read recently. I think you could learn much more through moneycontrol. Filled with full of assumptions. Not even a single clear cut idea on how to pick a stock. No analysis on financial ratios. Ludicrously written. View 1 comment. Jan 18, Karthi Sn rated it it was amazing. Obtained a plenty of terms and knowledge. Also a great read. No words to praise. But not to give a slight thought for the same. Read and I keep reading whenever have doubt.
Sep 18, Gautam Subramanian rated it liked it. Basant shares some really good insights about Indian equities and seems to be a huge fan of holding highly concentrated and heavily leveraged portfolios However, he came across as a confused author to me as if he's trying too hard to theorize his stock picking ideas. Jul 06, Ritesh Gupta rated it really liked it. Jun 22, Mahesh rated it really liked it. Hi, this is my first book on investing and i enjoyed and learned so many things from the book but no real time examples covered for analysis of the stock, If covered, it will be very good learning.
Mar 01, Karan rated it it was amazing. Masterpiece and practical about how to invest in Indian markets. It's a no-nonsense book. One can literally relate to market price movements. Jun 18, Bhavin Shah added it. Best book to read for new comer into Stock Market. Jul 01, Bharat Rathore rated it it was amazing. Best contemporary book. Jul 05, Jp rated it really liked it.
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