Monday, March 31, 2025

Confessions of Stock Market Wizards

Name of Book:- Confessions of Stock Market Wizards

Author: - Safir Anand

No of Chapters: -26

Number of Pages: - 305

One line Description of the book: - Learn from top investors of India

What this book is about: -The Book is a collection of thoughts, mistakes, strategies and methods followed by top investors of India. The book includes thoughts of Ramesh Damani, Sanjay Bakshi, Devina Mehra, Raamdeo Agarwal, Sankaren Naren, Vijay Kedia, Amisha Vora and many more. Book provides beautiful insights how these big investor handles crisis situations, importance of team discussion about investment and acceptance of mistakes in ever changing scenario of Indian financial landscape.  

Some of the common points shared by various investors in this book are: -

1.     Reading is one of the most common things between these investors. They regularly keep on reading books, newspapers, journals to expand their circle of competence. Some of the investors even recommend reading fictions to understand psychology of characters involved in fiction.

2.     Mistakes are inevitable in market; they keep on happening despite putting best efforts and new mistakes will keep on coming. The method adopted by these investors  is accept your mistake as quickly as possible, take corrective action and learn from them.

3.      Investors should always be open to reverse their decision, if their decision has gone wrong.

4.      Every crisis or market crash is an opportunity for creation of wealth.

5.      Have a well-documented process in place for ease of screening companies for investment.

6.      Holding a company forever is applicable till the company is growing.

7.     In any investment decision, some of the obvious things like management with dubious track record, high debt can easily used for elimination process.

8.     Nobody in this market has 100 percent track record. The only thing we need to look is to have more rights than wrongs in our portfolio.

9.     Always keep on selling popular stocks to ensure outperformance of your portfolio. When mutual funds are launching thematic funds, then time for exiting that theme has come.

10.   Leave your ego. You can fail anytime in market, accept the fact.

11.   Have a well-structured checklist in place for scanning the companies and keep on updating this checklist.

12.   Always look for value buying to create wealth over a period. Have a list of good value companies with price range to buy at time of distress in market.

13.  Overreliance on historical data can cause severe mistake, as past performance is never guaranteed in market.

14.   Decisions for buying or selling must be support by data.

15.   Tenth Men rule:- 10th Men will always challenges the consensus decision.

16.   Be ruthless in removing bad investments from your portfolio in case of portfolio rebalancing.

17.   Follow 3 U principle:- Under-Valued, Under-Owned and Under-Performing for better results in portfolio.

18.   Improper allocation and selling the winners early are two most common mistakes made by most investors.

19.   Remember that stock market is indifferent to your emotions and ego.

 Recommended reading material: -

1.     Thinking, fast and slow: - Daniel Kahneman

2.     Margin of Safey: - Seth Klarman

3.     A Zebra in Lion Country: - Ralph Wanger

4.     Value Investing: - James Montier

5.     The Zurich Axioms: - Max Gunther

6.     Winning the Loser’s Game: - Charles Ellis

7.     Shoe Dog: - Phil Knight

8.     The Art of Thinking clearly: - Rolf Dobelli

9.     A Man for all markets: - Edward O Thorp

10.  The Man who solved the market: - Gregory Zuckerman

11.  Unflattening: - Nick Sousanis

12.  Market Wizards: - Jack Schwager

13.  Reminiscences of Stock Operator: - The life and times of Jessie Livermore

Final Thoughts:- This is one of the finest book that share insights from top investors of India on various aspects of investing. Book is a must read for one who wants to expand their investing knowledge and be a better investor.

Buy it here


Saturday, January 18, 2025

Name of the Book:  JOY ON DEMAND

Author: - CHADE-MENG TAN

No of Chapters: -07

Number of Pages: - 261

One line Description of the book: - Practical and Workable Process Oriented book for Joy in life

Dedicated to:- My  wife Shaminder Kaur

What this book is about: -The Book is about how to be happy with tested and easily adopted methods by the author. Author explains how anyone can be happy even in the distressful times and can easily uplift the mind in a second by regular practice. Book is like a flow of river which starts with one breath exercise, then taking it towards how to uplift the mind in one second and methods to deal with emotional pain towards the end.

The book starts with introduction, how author learned to be jolly for fun and profit. Author states that Happiness is a skill which can be trained like any physical Exercise. Everyone has got a threshold level of happiness which they eventually return after any big positive/negative life events. This threshold level of a happiness can be raised by mind training. Author here shares a study of 2003 indicating that merely eight weeks of mindfulness training is enough to create significant changes in the brain.

Author states that joy attained devoid of any stimulation-like senses or ego is the best form of joy which can be attained by a three-step process namely Easing into joy, Inclining the mind toward joy and finally uplifting your mind for joy.  Towards the end of chapter, Author cites numerous benefit of joy like better sleep, joy independent of circumstances, ease of dealing with difficulties and emotional pain, and lot more.  Author also cited a study which indicates that happiness raises productivity by 31 %, accuracy on task by 19 %. Happier people are more popular and better at their jobs (including student life)

First chapter of the book is Joy becomes you. In this chapter, Author explains various reasons why people are not able carry out mindfulness training despite lots of benefits of it. Author here mentions non-availability of time and boredom of process as the main reasons why people are unable to practice meditation.  Author also cites the example of person named Shinzen who was particularly weak in Maths and Science, later on with the help of meditation he could be able to learn these two dreaded subjects with ease. Author here cited his own example of calming the mind on demand where he was able to calm his mind instantly when delivering the TED talk at stage.  Author also indicates that mediation improves the charisma and attractiveness of person as he becomes warmer and kinder toward others.

Second chapter is the starting point of journey towards the mindfulness training named as Just one Breath.  Author explains the problem associated with normal meditation regimes is that people are  not able to continue exercise is dedication of definite amount of time, lack of exercise buddies to motivation and boring routine without joy.  In the chapter, emphasis is laid into incorporation of mindfulness training into day-to-day life activities.

One Mindful Breath:- Formal practice

Person can close your eyes or keep them open. Take one slow, deep breath. For the duration of that one breath, give your full attention to the breath in a gentle way. Total and gentle attention on feeling your breath, that is all. Author here cites example of Tennis players use that to calm mind in 10-15 seconds between two points. Noval Djokovic confirmed this to be true.

Third chapter is the book is enhancement of first step of one breath to next level for settling of sustainable joy. In this chapter, author explains the process of settlement of mind by there methods namely Anchoring, Resting and Being. Author states that reader can choose any method that suits them. Each method has some degree of mental stillness and attention to the present moment, as common factors.

Formal Practice: - How to settle the mind

Timing of Exercise is 5 minutes: -

·       First three minutes on exploring each method for one minute followed by last  two minutes on any one of the three you like.

·       Setup: Sit in a posture that allows you to be alert and relaxed at the same time. Eyes can be open or closed.

·       Anchoring (1 minute): - For 1 minute bring attention to the breath, or the body, or any sensory object that affords the mind some measure of attentional stability. If attention wanders, gently bring it back.

·       Resting (1 Minute): - For the next minute, rest the mind by telling yourself “There is nowhere to go and nothing to do, except rest.”

·      Being (1 Minute): - For the next minute, sit without agenda and experience the present moment.

·       Freestyle (2 Minutes): -For the next two minutes, practice any of the three methods you like.

Author here also debunks the myth that Meditation Is Not About Thinking.  One of the biggest misconceptions about meditation is that it involves “emptying your mind of all thoughts “.  Meditation is about allowing the mind to settle on its own terms, in its own time. As per Author, in meditation we need to balance three mental factors: mental relaxation, mental energy, and equanimous watching

Fourth Chapter is dedicated towards inclination of Mind towards joy i.e. how to notice joy in daily life, how to experience it and how to be part of the same. The key factor in inclination of mind towards the joy is familiarization with joy. Author shared another analogy for familiarization by turning joy into a close relative, a favorite family member or a person you can always rely on to be there for you.  To become close with somebody, you welcome the person into life and spend time with her, treat her with openness.

Author explains the two step process of inclination of mind towards joy. First and foremost, thing is noticing a moment of joy around you and second part is attend the joy with full concentration. Author lays stress of noticing moment of joy in day-to-day life activities, once it becomes habit then your mind will be easily inclined towards joy.

 For the mind to get familiar with joy, first it must be noticed. So, we must train it to perceive thin slices of joy. In life, many moments of joy abound, but they are easy to miss because they are usually fleeting and not super intense. They come in form of small things both in time and space. We need to train our mind which is simple. For example, notice the pleasant feeling of warm water on the skin in winter. Taste of good food, aroma of soap, taste of 1st sip of water when thirsty, etc. Just notice these simple things.

Attending the Joy:-

Once begin to notice joy, then the next step is to pay intense attention to joy .Author here explains three sources of joy of noticing and attending joy in day-to-day life activities.

 

01.  Type of behaviour involving generosity, loving kindness, and compassion.

02.   Ethical behaviour is another one. “Doing the right thing”.

03.  Another source of wholesome joy is attending to pleasant experiences in your normal everyday activities.

Author also explains the importance of Gratitude for various things in life and suggests great exercises to attending joy in your lie.

1.     Spend two minutes daily to scan the world for three things you are grateful for.

2.     Recall one positive exercise daily

3.     Maintain the gratitude journal and write new things to be grateful for.

“Someday, I will Die, and Other Happy Thoughts.”

This chapter also indicates most powerful though of experiencing joy in life is awareness of mortality. Remembering that I will be dead soon helps me making big choices in life. Because almost everything-all external expectations, all pride, all fear of embarrassment or failure-these things just fall away in the face of death, leaving only what is truly important. It is the best way to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.

Here, Author cites one study that shows, when you think you have less time on earth, the more likely you derive happiness from ordinary experience. BBC story titled “Bhutan’s Dark Secret of Happiness” suggests that people in Bhutan are so happy because they think of death 5 times a day.  This concepts reminds of character of Rajesh Khanna from  Hindi movie Anand. Movie. This mortality awareness makes it very hard for one to stay angry at loved one very long.

Informal Practice: - Awareness of Mortality

At least once in a day, either in the morning shortly after waking up or in the evening shortly before the sleep, or anytime in the day, remind yourself of these two things:

·       Someday, I will die. I will die.

·       Every moment is precious.

Author explains the concept that we should feel the joy when we are healthy. He explains this concept as, to not be in pain is one of the greatest joys of life. This is true most of the time, but we miss it completely, because we take it for granted.

Next chapter is dedicated to lifting your mind in seconds. To uplift the mind in seconds, Author gave a cocktail of three sublime emotional states: loving kindness, compassion, and altruistic joy. In this aspect, Author gave a ten second exercise to uplift your mind in seconds: Identify two human beings in the room and just think, “I wish this person to be happy, and I wish for this person to be happy.” You don’t say or do anything, just think. Everybody emerges from this exercise smiling, happier than ten seconds before. This is the joy of loving kindness.

Another Exercise: Once an hour, every hour, randomly identify two people walking past your office/home and secretly wish for each of them to be happy. Don’t say or do anything. Just think, “I wish for this person to be happy.” Just do it once and go back to work. You can do the above exercise any time, at any place. If there is no one around, bring someone to mind for this exercise.

 Formal Practice:

·       Sit in alert and relaxed position.

·       Repeat the cycle once per minute.

·       Bring to mind someone for whom you can feel loving kindness.

·       Wish for him/her to be happy.

·       The joy of loving kindness may arise.

·       If it does, pay full attention to it until it fades away.

·       Do this for 3 minutes.

Next emotional state is Compassion, for which Loving Kindness is a Gateway. In loving kindness, we wish for others to be happy. In compassion, we wish them to be free from suffering. Compassion is the happiest mental state ever measured in the history of neuroscience.

 Formal Practice: Cultivating Compassion Through Peace, Joy, and Kindness

·       Setup: - Sit in an alert, relaxed position.

·       Settle the Mind (2-5 minutes): Settle the mind with either anchoring, resting, or being.

·       Attend to Joy (2-5 minutes): If any joy arises, bring full attention to it. If necessary, bring up a full smile, or half a smile.

·       Loving Kindness (2-5 minutes): Wish for someone to be happy. If joy arises, bring full attention to it until it fades away. Repeat it as many times you like. You can rest in between.

·      Compassion (2-5 minutes): Bring to mind anybody who you know is suffering. Feel his pain. Sadness may arise. If you can experience sadness with equanimity, do so. Even if there is no equanimity it is OK. If it is uncomfortable, you can shift attention to the sensations in body. If that is also uncomfortable, you can stop.

·       Selfless Love (If Any) If at any stage during compassion exercise, selfless love arises, bring full attention to it. If any joy arises, pay full attention to it.

·       Closing (2 minutes): End the session by settling the mind for 2 minutes.

Next emotional sublime state in uplifting the mind in few seconds is altruistic joy. It is a joy derived from the success and good fortune of others. However, it is hard to cultivate. There is a subset of altruistic joy that is easy and uplifting, and that is rejoicing in the inner goodness and altruistic behaviour of the others.

Formal Practice: Uplifting and settling the mind with Altruistic joy

·       Setup: Sit in an alert and relaxed position.

·       Uplift the Mind (2-5 minutes) Bring to mind one or more people whom you have brought joy or benefit out of purely altruistic intent. Reflect on these deed and the good intentions behind them. Or think of similar things done by those whom you admire.

·       Settle the Mind (5-10 Minutes) Settle the mind with anchoring, resting, or being. Allow mind to settle on its own.

·     Closing (1-2 Minutes) Close by noticing any joy present, and if so attend to it for one or two minutes.

Informal Practice:- Rejoicing  in inner goodness and altruistic deeds

·       Whenever you make a donation of time or labour, take a moment to think, “I am doing this out of altruistic intention. It makes me so happy.”

·       Whenever you meet or bring to mind an admirable, inspiring person, take a moment to think, “We have such wonderful persons in this world, I am so happy.”

·       Whenever you see somebody performing an altruistic or heroic act, take a moment to think, “More good is being done in this world, I am so happy.”

 Scientific explanation Why these sublime states are called heart qualities.

Author here gave the scientific explanation why these sublime states are called heart qualities. In state of kindness or compassion, vagus nerve of heart gets activated which is responsible for regulation of heart rate, blood pressure, glucose levels, immune response and other body functions. Frequent activation of the vagus nerve is good for your physical health.

An interesting study was conducted by scientists where in they tried to measure the qualities like compassion, kindness by means of neurological signals on monks. Monks laughed at scientists, considering them as silly because monks thought these qualities are function of heart. Later, during various studies carried out it was observed that compassion is combination of neurocardiac effect of body.

Next chapter deals with working with emotional pain. Author explains three step process of dealing with emotional pain which are attentional step, an affective step, and a cognitive step.  These three steps are useful in all situations involving emotional pain, whether you feel sad, angry, humiliated, betrayed, or hateful. Sometimes, however, our difficulties are so intense, and emotional pain is so severe that even these three steps fail. In times like those, we practice the art of suffering.

Author here explains that it is possible to experience joy even in the extreme painful circumstances. This is because peace and joy are default states of mind. They just have to be accessed. The state is like a moon clouded by emotions. Painful emotions obscure joyful state, not destroy it.

Author here cited example of Rigoberta (92 Noble price winner) who had her father burnt alive, mother raped, tortured before death, brother murdered, lost youngest son, had seen thousands oppressed, tortured and murdered. She is wise, kind and joyful. She is friendly to everyone and treats everyone with kindness. Gives people huge smile and warm hugs. She is bursting with joy. She holds a large amount of pain, but with courage, equanimity, kindness, compassion and joy. She says that she could achieve it only through deep spiritual practice.

 Joy and pain can coexist. Depending on which one is strong, the other can be displaced. Rigoberta demonstrated that joy can become a skilful container of pain, limiting its damage and allowing the healing process to work. It is like a cast around a body part with fracture.

 Willingness to Experience Emotional Pain

Author here explained the four step process of dealing with emotion pain in the body.

 The first is to clearly perceive that these emotions are just unpleasant sensations in the body. The sensation leads to perception which leads to aversion, which in turn leads to suffering. This is the most important insight. Therefore, to reduce suffering, we must attack aversion. By reducing aversion, we reduce suffering, although, sensation and perception of emotional pain may remain. The third step is apply the first antidote to aversion: loving kindness. By seeing painful emotion as bodily sensation and then applying loving kindness both to the emotion and the self, one begins to soothe the pain.

The fourth and final step is to apply equanimity. Just watching the sensations in the body, every now and then, I remind myself, they are simply sensations in my body-these emotions are not me.

In this chapter, Author also explained the concept of failure in life which comes preinstalled in everyone’s life.

 Last chapter of the book deals with effect of mindfulness training beyond the worldly pleasures. Here, Author explains the next stage in meditation wherein we have to abandon the effort to carry out meditation. Author explains that a large percentage of our suffering comes from the sense of I, myself, and mine, all of which originate from the sense of a solid, substantial self, so once the sense of self is realized to be a process that is completely mind generated, then a lot of suffering goes away or is greatly reduced.

Chapter also deals in details about the importance of letting go in meditation. When I let go of dependence on sensory pleasure, I experienced the joy of ease. When I let go of some meaningful amount of anger and resentment, I experienced joy of goodwill. When I let go of my compulsion to feel the unpleasant feeing related to my failure, I experienced the joy of confidence. This is joy of freedom- from want, anxiety, ego and resentment.

Brilliant insights from the book:-

 

1.      Success leads to happiness and happiness leads to joy is lesser meaning as compared to actual one i.e. Joy leads to happiness and happiness leads to success.

2.      Wealth is a personality multiplier. A philanthropic person can become more philanthropic and Unkinder person becomes unkinder.

3.       Meditation is not about emptying your mind of all thought.

4.      Meditation is similar to cooking which involves skilful management of energy.

5.      What we do not notice, we cannot see, and what we don’t see we can’t understand.

6.      Noticing that you are not in pain can be a joy itself.

7.      Don’t Stop and don’t Strain: - Principle for life

8.     Someday, every single person I love dearly will die. They will all die. Every moment I have with them is precious.

Final Thoughts :- This is one of the best book that deals with mindfulness training in a easy and practicable way. This book offers valuable insights into how individuals can cultivate joy at will, reduce stress, and lead more fulfilling lives. Book is a must read for everyone to achieve calmness in mind in day to day pressure situations

 Buy it Here 

 

Monday, October 21, 2024

Let's Talk Money

Name of the Book:  Let’s Talk Money

Author: - Monika Halan

No of Chapters:-14

Number of Pages: - 215

One line Description of the book: - Let Money Work for You

What this book is about: -The Book “Let’s talk Money” is a primer for beginners who want to take control of their financial planning. The book is extremely valuable for anyone who feels overwhelmed by complex financial jargon and don’t know where and how to start their financial planning journey. The book starts with the Covid Experience of the Author which led to change here perceptions about money, life, and work. The importance points of her changed perceptions are enumerated below: -

1.      About Money

a.      Savings can be increased sharply as we require very less for living (From Covid Experience).

b.     For persons below 40 years of age, six months of Emergency funds in terms of FD to meet living expenses and for persons above 40 years of age it should be minimum 02 years.

c.      There is no safe haven for your money. Each investment comes with risk.

2.      About Life

a.      Have wills in place.

b.     Identify three friends and relatives who you can trust fully, in case of death of you and your spouse.

3.      About work

a.      Don’t fall in routine work.

b.     Build a second and a third career even as you work your current job.

First two chapters in the book deals with management of money i.e. financial planning. It lays emphasis on three account system that separates your income, spending and savings.  It also lays importance on the facts like how much should be EMIs and savings of the  your take home income.

Third chapter deals with the aspect that how much fund we should have to meet out emergencies in life depending upon the age profile. Fourth chapter deals with how much medical cover is needed for a person and what are the terms that we should be aware of while buying a medical cover. Some important terms to look out in medical policy are Co-pay clause, Pre-existing disease clause, Disease waiting period, Sub-limits, Exclusions etc. which author had dealt in detail. Chapter also covers strategies for older people regarding the medical cover. Author also deliberates on critical illness and personal accident cover in detail.

Fifth chapter deals about the life cover one should have that allows the family to maintain their lifestyle and future goals in case of death. Author suggests buying pure term insurance plan online to remove agent commission cost. Author states that sum assured should be eight to ten times of your annual take home income or fifteen to twenty times your annual expenditure.

Sixth chapter is dedicated to have a financial investment plan in place considering near, medium, and long goals in place with monetary value of each goal. In chapter seven, Author given detailed explanations of various financial assets like gold, real estate, FD and debt funds. In this chapter, author cited simple thumb rule allocation of debt which is equal to age of person.

Eighth chapter is dedicated to equity which is favorite asset class of Author. Chapter basic information about Sensex, mid-cap index and Banking index. This chapter also compares investment in real estate and equity.

Nineth chapter deals with basic information about mutual funds like what is mutual fund, what are the basic types of mutual funds, costs and terms associated with mutual funds.

Tenth chapter deals with allocation of each financial instrument on basis of cost, returns, Lock-in period, cost to early exit, taxes and holding period associated with each instrument. Author also gives allocation strategies for Emergency, Medical insurance, life insurance and retirement for an individual.

Eleventh Chapter deals with retirement planning. Author stresses the importance of starting early and being consistent. She advises using retirement-specific products like the National Pension Scheme (NPS) and Public Provident Fund (PPF) in India, which offer tax advantages and steady, risk-free returns. She also discusses the role of Employee Provident Fund (EPF) and how one can boost retirement savings by topping up contributions.

Twelfth chapter deals with frequency of auditing your financial planning to see whether the things are moving in line with planned goals or not. Thirteenth chapter deals with the importance of nominations and wills to take care of any emergency.  Will should cover the details of all the assets and who will get what along with information to family members about location of the will.

Last chapter of the book deals with the various things and actions that can destroy your financial planning. Author warns readers about common financial traps such as Ponzi schemes, high-fee financial products, and the over-promotion of complicated investment vehicles. She advises against making decisions based on fear, greed, or lack of knowledge, and advises the readers to stick to simple and proven investment instruments.

Conclusion: - Overall, "Let’s talk money " by Monika Halan is book that demystifies the complex financial planning in a manner that is practical an east to understand. This is a must-read book for anyone who is new financial planning who want clear and simple advice on savings, investing, tax planning and retirement.   

 Buy it Here 

Confessions of Stock Market Wizards

Name of Book:- Confessions of Stock Market Wizards Author:  - Safir Anand No of Chapters:  -26 Number of Pages : - 305 One line Descri...