The Thoughtful Investor

Basant Maheshwari

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The Thoughtful Investor isn't just about creating wealth but also about retaining it. The book takes the reader across the various aspects of investing which would help him in identifying the winning stocks and avoid the losing ones. Every reason to buy a potential multibagger comes with a counter argument, but those stocks will still have to be bought if an investor wants to make serious outsized gains. This book deals with all such issues and a lot more so that the focus remains not just on the speed of the return but also on the size of the gain. The arguments in the book are backed by examples on Indian companies taken out of the Indian stock market. This makes the content more relevant for the Indian investor. The underlying theme revolves around evaluating when to hold a stock and when to fold it, with a recurring focus on not just the Return on Capital but also the Return of Capital.

What will you learn from this book

  1. Long-term Perspective: Maheshwari emphasizes the importance of adopting a long-term view when investing. Instead of short-term gains, focus on sustainable growth and wealth creation over time.

  2. Quality Over Quantity: He advocates for investing in quality stocks rather than trying to diversify across numerous options. Concentrating on a few strong picks can yield better results.

  3. Understand the Business: Before investing, thoroughly understand the underlying business, its industry, competitive landscape, and growth potential. This knowledge forms the foundation of successful investing.

  4. Value Investing Principles: Maheshwari follows principles of value investing, which involve identifying undervalued stocks based on fundamentals, rather than following market trends or speculations.

  5. Patience and Discipline: Successful investing requires patience. Avoid the temptation to react impulsively to market fluctuations and stick to your investment plan with discipline.

  6. Continuous Learning: Keep learning and updating your investment knowledge. The market is dynamic, and staying informed is crucial to making informed decisions.

  7. Risk Management: Diversification is important, but not at the cost of quality. Balance risk by spreading investments across sectors or asset classes while maintaining a focus on fundamentally strong companies.

  8. Psychology of Investing: Maheshwari delves into the psychological aspects of investing, discussing emotions, biases, and the importance of maintaining a rational mindset during market volatility.

  9. Adaptability and Flexibility: Be adaptable in your investment approach. Markets change, and being flexible in your strategies allows for adjustments based on evolving market conditions.

  10. Focus on the Long Game: Successful investing isn’t about quick wins; it’s about consistent, well-thought-out decisions made with a focus on long-term growth and wealth preservation.

Language English
ISBN-10 978-93-5156-508-6
No of pages 428
Font Size Medium
Book Publisher Roman Books
Published Date 01 Jan 2015

About Author

Author : Basant Maheshwari

1 Books

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