• Investors pay an exorbitant price for stocks when they chase stocks during bull runs or a bubble.
• Be cautious about the stock information fed to you by media, your friends, your neighbour or even your spouse. Always verify for yourself the accuracy of that information and don’t fall for hear-say.
• Rapid growth in any sector or company doesn’t mean the sector or company is making actual profits. It does not ensure good investment returns either.
• Do not buy what everybody else is buying. There is merit in contrarian investing.
• Value investing is the more rational option when compared to growth investing. Buy a stock with good fundamentals and the have the patience to be invested in it for the long run.
|No of pages||319|
|Book Publisher||Tata Mcgraw-Hill|
|Published Date||01 Jul 2017|
Author : Parag Parikh2 Books
Parag Parikh was an Indian entrepreneur and author. He was the founder and chairman of PPFAS Ltd, an Investment Advisory Firm. He began his sojourn as a broker on the Bombay Stock Exchange, in 1979. He has a Masters’ Degree in Commerce & Economics from the University of Bombay.
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"When others are greedy be fearful and when others are fearful be greedy"-ill-timed bouts of greed and fear among investors make stock markets volatile. Ratinal and successful investing is all about restraining and channelizing these emotions and understanding behavioral finance, not market sentiments, crowd behavior or company performances.
At a time when market upheavals are eroding investors' confidence, dooming life's earnings and corporate fortunes, and shipping up mass hysteria-Value Investing and Behavioral Finance comes as an antidote to investor anxiety and a guide to sane and safe investment decisions. Using investing trends in Indian capital markets over the last three decades, it shows how collective behavioral biases affect investment decisions, returns and market vagaries. As a corrective, it spells out long-term value and contrarian investing strategies based on the principles of behavioral finance.
Further, it advises on how to spot investment opportunities and pitfalls in commodity stocks, growth stock, PSUs, IPOs, sectors and index stocks. It also alerts the reader to a 'bubble' or crisis situation, and ways to identify and insure against it.
Value Investing and Behavioral Finance, a timely offering from a seasoned investment strategist, is a must read for stock brokers, bankers, lay investors, portfolio manager, fund manager, and students of finance.