Peaceful Investing

 

Name of the Book: - Peaceful Investing

Author: - Dr. Vijay Malik

No of Chapters: - 30

Number of Pages: - 243

Single Sentence description of Book: - Peaceful Investing

About the Author: - Author is expert in identifying multibaggers at early stage when they out of focus of stock market. He is multitalented personality with rarest combination of medical and finance. He is called as Dr Stock in the financial world. To see the impact of the author, I just googled screener.in to find screens named after him. To my surprise, I came across at least more than 20 odd customised screens in the website named after him. One more important thing that on his website, Author has responded to almost every detailed analysis carried out by the readers and given his valuable comments over the analysis.

What the book is about: - Book is simple step by step process of identifying the multibaggers in the stock market. The book is an extension of theories of legendary investors like Warren Buffet and Benjamin Graham, but author has added some points as per his experience in the stock market. It lays focus on the fact that once you have identified a good company, then stay with it till it performs on quarter to quarter basis. Author also explained the fact why he has left the technical analysis to fundamental analysis and never came back.

 Book explains the complete process of investing in four steps: -

1.Financial Analysis: - It provides the details of information that we need to look into Profit and Loss statement, Balance sheet and Cash Flow statement. It explains the importance of all the three statements for good stock picking.

2. Business and Industry Analysis: - Here Author has given more importance to the business qualities of the company that the industry in which it operates. This section contains how to find out the business advantage i.e. moat of the company over its peers.

3. Management Analysis: - This step deals with what needs to be studied about the promotors of the company like their education background, experience in the sector, project execution skills, integrity and behaviour in the time of crisis. Author suggest to google about the promoters to find out their involvement in any financial irregularities in past.

4. Valuation Analysis: - In this step, author explained the significance of various financial parameters Price to Earnings Ratio, Earning Yield etc. Here it is explained the difference of investing in low P/E stocks with High P/E stocks. He has also explained what premium we can give to high P/E company, if it is growing at a good pace.

Learning’s: - Some of the great things that I learned from the book are as follows: -

a) Sustainable growth rate of the company is more important than growth rate of company
b) Why it is necessary to read the report on the credit ratings of the company
c) What to look in the Annual reports of the company
d) Why it is important to look for the salaries of the promoters in Management Analysis

e) Where to look for information about the companies.

f) Checklist for information before investing in a company

 

Overall review: - Book provides a simple insight in the world of Financial investing. The examples given in the book are easy to understand and follow. The book supports the philosophy of long term investing in good companies. More important, the book is written from the Indian perspective