Book cover – Hindi edition of the book

Hindi book cover - Riding The Roller Coaster

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What IFAs can teach clients about market cycles

It is very tempting for clients to be in the next best investment and one often regrets missing out on something.

Read on …. What IFAs can teach clients about market cycles

Enjoy the roller coaster this Diwali

“Riding The Roller Coaster – Lessons from financial market cycles we repeatedly forget” the book is available in multiple formats now. Take your Pick.

  • The book is available in two languages – English and Gujarati.
  • It is also available in two formats – hardbound and e-book. There are multiple e-book formats available.

So, go ahead and take your pick. Enjoy the roller coaster this Diwali.

Wish you all a Happy Diwali!

… the tuition charged by the market is quite high …

This is what Rajeev Thakkar, CIO, Parag Parikh Mutual Fund has to say about the book:

George Santayana has said “Those who cannot remember the past are condemned to repeat it”. Amit Trivedi’s book helps us live through and experience the past vicariously and helps us in avoiding a repeat of the past mistakes. For those who are contemplating not reading this book, there is an alternative. They could directly try investing and the markets will teach them. However the tuition charged by the market is quite high!

#RidingTheRollerCoaster –

Favourite book …

I came across this article recently. This profiles a successful CFO of a company, who is now managing her own company. Have a look at a box titled “Favourite picks” towards the end of this article.

BE the BEST version of YOU

Thank you so much.

 

 

Amnesia

Jason Zweig writes the following in “The Devil’s Financial Dictionary”:

Wall Street suffers from many ailments also, but amnesia is foremost among them. By burying the past, the financial community can disavow any responsibility to learn from its own mistakes and can minimise the odds that its clients will be able to learn from other people’s mistakes.

In the above paragraph, “Wall Street” is representative of investors at large. That is exactly why in the “Introduction” chapter of the book I have written the following words:

Our memory is short-lived. I would strongly suggest you keep reading this book every year to keep your memory refreshed. (That is why we are printing this book in hardbound format).

#RidingTheRollerCoaster – 253

Roller Coaster in the mind – “Success-confidence-overconfidence-ego inflation-mistakes-fall-lessons-right actions-success”

“The 22 Immutable Laws of Branding” – a wonderful book by Al Ries and Laura Ries has some superb lessons for CEOs, entrepreneurs, marketing managers and brand managers. I found some lessons for the investor, as well. Here is a short excerpt that I liked:

“Success in business doesn’t just show up on the bottom line of the profit-and-loss column; it also goes to the top. Success in business inflates the egos of top management.

Supremely successful companies believe they can launch any product into any market. They can make any merger work. It’s just a question of having the willpower and the resources to throw into the task. What is it that we want to do? is the question that management usually asks itself.

History hasn’t been kind to this type of thinking. Overconfident management has been responsible for most of the marketing disasters of the past decades.”

The above paragraph talks not about the skills and abilities of the successful managers. It talks about the way the human brain works. Success leads to confidence – that turns into overconfidence – which inflates the ego. Ego blinds the brain and misguides it.

It’s all in the mind – after all.

Now replace successful top managers of a successful company with a successful investor and you see the point that I am making. The moment an investors gets small successes, the “success-confidence-overconfidence-ego inflation-mistakes-fall” cycle must follow. Very often, the success of an investor is not a function of what the investor was capable was, it’s a function of the investor being at the right place at the right time. To make it short, “investor was at the right place at the right time” can be replaced by the words “investor was lucky”.

This can be turned to the investor’s benefit if the investor adds some steps to the cycle. The cycle should not end at the “fall”, but continue from there to “… fall-learning the right lessons-taking the right actions-success”.

#RidingTheRollerCoaster – 172