Stocks To Riches

Best book for the investor point of view. It explained how an investor think in different situation in detail. But the examples are less. Must and should read for the people who are looking start investing. This book is not about fundamental analysis or technical analysis but purely how investor thinking effect the market.

The book writes in an extremely simple language at places, targeting a novice investor, and at the same time advocates some of the counterintuitive concepts such as not investing in mutual funds which are ideally suited for seasoned investors. That doesn't seem apt. Moreover, the book is from before 2008, so is lacking in some crucial practical insights.However, if you are reading on the subject for the first time, the book is still filled with a lot of distilled wisdom which you will find useful as well as entertaining.

This is an awesome book. It points out many traits of behavioral economics, which is an eye opener for me. Things like loss aversion, sunk cost fallacy are explained nicely with example. Also we get to see how as human beings we treat same amount of money differenly, if it comes from different sources. There are many good lessons to learn from this book. I'll be coming back to it, once in a while, because everything isn't clear after only one read. It surely takes more than one take, atleast for me, to assimilate all the ideas.

Bas gyaan fekta hai.. not a single place guides you what you must actually do. Waste of time. Probably I felt this way more because I read straight after Intelligent Invester by Benjamin Graham. Places in the book are copied directly from Graham's writing and from Rich dad Poor Dad and he does not do a great job in explaining those concepts either.I am still looking for books that will have more context on the Indian stock markets with all its nuances.

There is a subtle element in the title of the book. Getting rich through stock investing is more an act of understanding your mental programming and taking advantage of it rather than blindly following the noise in the market. The author Mr. Parag Parikh has simply and beautifully narrated the theme and also has provided the action plan to overcome the biases inherent in the human psyche. The book is more geared towards the Behavioral Finance and this is Good.