I have a passion for stocks and have spent my last 4 years learning, investing and educating people about stock market investing.The best part is that the book focuses on the Indian stock market and all the chapters are explained with the help of Indian stocks.In the first chapters, Parag Parikh explains why people fail while investing.
He gives the explanation using the human nature of laziness, greed, self-interest, ignorance etc. One of the main reason for the failure of people that he explained is unwillingness to delay gratification. Instant gratification causes the vast majority of people to indulge themselves in short-term gain for long-term pain. Some common valuation heuristics are- Price to earnings heuristics, Price to book value heuristics and price to sales heuristics. What really differs a contrarian investor is his emphasis on looking for opportunities where the sensual opinion has led to mispricing. Quick Note Looking for the best Demat and Trading account to start your stock market journey Open your demat account with the No 1 Stockbroker in India -- Join 4 Million Investors Traders, Zero Brokerage on investing in stocks and mutual funds, Instant Paperless online account opening. Click here to Start Now Parag Parikh explains how contrarian investors have outperformed the other investors in a long run. Further, he also suggests why its difficult to follow contrarian investing with the behavioral reasons of group thinking, false consensus effects, ambiguity effect, herding etc. He explains the various reasons for growth trap like going with the herd, peer pressure effect, overconfidence bias, bystander effect etc. Parag Parikh suggests that there has always been the craze of new things among the public like the latest dress, latest bikes, latest cars etc. Value Investing And Behavioral Finance By Parag Parikh Free From ThisHe argues that even the investors are not free from this behavior and easily get influenced by the listing of a new company or a new emerging sector. However, investing in IPOs is not a good idea for value investors. Parag Parikh explains this with the help of a study he conducted on the long-term performance of IPOs from 1991 to 2006. Here, Parag Parikh analyzed different sectors like automobile, banking, real estate, telecommunications, FMCG etc and explained its past performance with future expectations. Its a good read for all those who want to study the performance of different sectors or are interested in investing in a particular sector. He explained this with the help of returns from the indexes- Sensex and nifty. Its definitely one of the best books on value investing based on the Indian stock market. You can also read The Intelligent Investor by Benjamin Graham review and find more insights on investing ideas. Value Investing And Behavioral Finance By Parag Parikh Free Equity MutualHappy investing Save Upto 90 on Brokerage Fee Trade Brains recommended top brokers to open demat and trading account in India No 1 STOCKBROKER IN INDIA Zerodha Free equity mutual fund investments Flat 20 intraday and FO trades TB Rating APPLY NOW GET FREE DEMAT ACCOUNT Angel Broking 0 Brokerage on Equity Delivery Rs 20 per order for Intraday and FO trades TB Rating APPLY NOW GET FREE DEMAT ACCOUNT 5Paisa Fix brokerage of Rs. TB Rating APPLY NOW.
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