Value Investing And Behavioral Finance: Insights Into Indian Stock Market Realities

My uncle recommended me this book,as I'm a beginner n want to delve into share market.im finding this quite useful n easy to understand .👍

300 pages to explain 5 or 6 of the simpliest concepts in behavioral finance. And repeated throughout every chapter. Boring even for beginners. As I said, a total waste of time and money

Pros:1. From an indian stock market investor point of view, this book really does a good job in making sense about investing behavioral anomalies.2. Concepts of value stock & growth stock.3. Analysis shown here also gives path how stocks & various sectors needs to be viewed strategically in bull & bear markets.4. Dividend rich stock & dividend reinvestment strategy.Cons:1. The book is very repetitive, same thing repeated over again in almost all chapters that annoys a reader.2. The book is analysed only till 2007, hence it has no reference given about the The Great recession market or Lehmann Brothers Crisis of 2008.3. This book is not at all for trading. So those planning to learn about intraday from this, just avoid it.Bonus tip: Read the book to find out why you should not be investing on popular marker index fund in India according to the author.

I enjoyed reading this book as it discusses very interesting ideas and points concerning Indian Stock markets. The focus of the book revolves around behavioural aspects of investing in various circumstances. The key message is to buy the stock at the right price and stay away from all behaviour anomalies which create hype around a particular stock. In the initial chapters, the author guides you through the characteristics of human nature and why people fail. This is extremely important to understand in stock investing. The author also describes contrarian investing i.e. going against the crowd and look for businesses at the right price. Chapters on growth Trap, commodity investing and public sector units are a real eye-opener. The author further discusses pitfalls of sector investing, IPOs and Index investing.Anyone looking for understanding value investing and what are the behaviour anomalies in stock investing will gain very good insights. One may find that behaviour aspects are coming up again and again in each chapter in a different form and message but they are rightly captured and positioned to illustrate the central theme of the book about behavioural finance. The author attempts to stress the point to resist excessive optimism, overconfidence, greed, envy, representative bias, media hype, herd mentality etc.There are good case studies presented in the book that will help you understand behavioural anomalies and mistake one makes in investing.The author also describes that Investing is not about taking short cuts and chasing hyped stock in which one attempts to make quick profits. if one needs to be successful in investing, one should develop certain attributes i.e. Patience, Sincerity, ability to control one emotion, finding companies with the right price. Eventually, this will translate into long term success.Overall, Wonderful book with a good recipe for success in Stock investing. Fantastic job!

Must read . Knowing past is the best to start in market