Beating the Street

I learnt a while ago, when reading non-fiction books, it’s important to mentally separate the content into what’s interesting because it’s entertaining and what’s interesting because it has underlying principles that help me understand the world better. Great books tend to combine entertainment and providing tools/frameworks but most books lean one way or the other. For books on investing and business in particular, I learnt to become wary of eloquent stories replete with hindsight bias that end with convenient and short takeaways as a guide to successful anything (outthinking competition / managing world-class teams / investing…). For investing books, unless the content is

Read more

So many stocks…So little time

This is a practitioner’s post for someone looking for help to develop their own investment process, using a freely available resource: screener.in Rule #1: Don’t f*** up The financial newspapers have a section on them everyday – top ‘Buy’ and ‘Sell’ recommendations from brokerages. Financial news channels have a segment called something like “Top Trading Ideas for today”. During other segments, every interviewee, whether head of research at a brokerage / mutual fund house / hedge fund gets asked this question about top stock picks to invest, in India. They all oblige, with a fresh set of stocks (companies), every day, that will

Read more

How to buy your first stock

Let’s say you recognize the corrosive nature of inflation, doff your hat to the marvel that is compounding and realize why equities are critical to wealth-building. Good going already. You’d now like to build your very own stock portfolio that you hope will grow your wealth manifold over the years. Fantastic! So, how do you find your first stock? Where to look One way is to flip through the pink papers or to CNBC to see what stocks the talking heads are eagerly touting as the next big thing. It is also probably the worst way. Reading the Financial Times to prepare for markets

Read more