Awesome Book – review on www.kobo.com

 Review of the book along with ***** rating

Awesome Book

Bible for investors, in fact this is a must must must read for all who are new , invested and expert. This book should be referred each year to refresh memories of Booms followed by Busts. A must book for all persons who wants to understand investor behavior across market cycles. The teaches us how not lose money. Highly Recommended.

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What goes up …

Sooner or later – often sooner than anyone expects – what has gone up will come down. Likewise, whatever has gone down will rise again, typically when the experts least expect it.

  • From the introduction to the book “The Devil’s Financial Dictionary” by Jason Zweig

 

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Is this the right investment?

Once again, I came across this question from an investor, “I have invested in such and such avenue. Is it the right decision?

On probing further, one gets the answers, which have by now become highly predictable for me.

In almost all cases, the investment avenue has a lock-in provision, which means the investor cannot get out of the investment even if one realizes that it is not a right instrument. Why, then, this question keeps surfacing after one has locked-in the money? Is it ok to assume that one did not ask this question before signing the cheque?

Doesn’t it make sense to ask questions BEFORE signing the cheque?

We learn from the story of Abhimanyu that it was easy to get into the chakravyuh, but without knowledge, it was difficult (sometimes impossible) to get out of it. Same applies to an investment with lock-in. Buying is easy, getting out is not.

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A short intro …

The book “Riding The Roller Coaster – Lessons from financial market cycles we repeatedly forget” is a story of various events that took place in the history of financial markets. More than that, it’s a story of the fickleness of the human mind.

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“Too good to be true”

Here is an excerpt from an interview of one of the finest bankers in India, Mr. Uday Kotak:

There is an internal story. There was this particular trade that had come to us, which was extremely profitable. It was too good to be true. That is a line we follow…if something is too good to be true, don’t do it. It worked for us. Another brokerage firm took that job And they were banned by Sebi for five years. We just said thank God!

Look at what he says. “If something is too good to be true, we don’t do it”.

I wish many small investors followed such a philosophy.

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One more review on www.amazon.in

By DR ANIL GUPTA

This is an excellent book on history of stock market .From Tulip mania,South sea bubble,Great depression 1929,Japans crisis,Dot-com bubble of 2000 to recent sub -prime crisis of 2008. Must read by every investor.Author also added the Great Indian scam of 1992 by Harshad Mehta than again by Ketan Parekh during IT bubble.If investor knows the history of stock market ,he can understand how market works with boom and bust cycles since last 4 centuries.There is nothing new in stock market.A proper knowledge of history will prepare an investor emotionally how to cope with market crashes.

He has also give 5-stars to the book.

Gujarati edition

Coming soon … Gujarati edition of “Riding The Roller Coaster – Lessons from financial market cycles we repeatedly forget”

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