Since the last decade, I’ve read numerous books on investing from non-fiction to academics.
All my understanding of stock market and investing I have condensed in one place, one book.
You may have been investing in stock market but in small amount that it hardly makes any difference.
Or you’ve been investing but haven’t made any significant profits yet.
This is because you haven’t followed the right investment approach. Because whatever game you play in life, you always have to know the rules to enjoy and win it.
Sadly, vast majority of people are left with only one option in stock market: Hit-and-trial method to discover whether they can make money in stocks or not.
Investing gives us an opportunity to build wealth and become financially free.
The reason I wrote this guide so that you don’t need to make those mistakes when the timeless wisdom, knowledge and concepts can be summarized and presented in one place.
You don’t want to end up wasting your time & money to invent the wheel.
With this guide, I have converted the complex process of Stock Market Into Simple Words.
This Guide is divided into 3 parts.
1) The Mindset I
What a stock market is and how to approach it. If you start your journey in the wrong direction, you end up at a wrong destination. This chapter is going to setup a solid foundation in your investment journey on how to think of the markets and will help you remain calm and think differently.
Complex financial concepts in the form of simple story
With the help of a story, I will explain some of the must know concepts of investing such as Discounting, application of PE ratio, ROCE (Return on Capital Employed), Dividend and it’s reinvestment.
Detailed comparison of various investment options such as gold, real-estate, bank deposits and myths related to stock market along with inflation.
- What to Buy
How to separate good companies from bad ones.
Here, I cover important topic such as moat and identifying moat in companies in great details. If you spot companies with strong moat, you basically buy money making machines.
The Time Tested Criteria to identify high profitable investments. There are some important concepts such as ROE, ROCE, DCF, PE. Earnings Yield and lot of more are discussed in great detail. I believe without understanding these, it’s very difficult to find great investments on your own.
- When to Buy
How to find the correct price of a stock to avoid overpaying. This is very important as most of the investors miss this point and end up following the crowd and taking huge losses.
Everyone knows the price of a stock but nobody knows its actual value. In this section, we discuss various valuation techniques that you can use. I also discuss which technique is used for which type of companies.
3) Mindset II
- How to Design a Portfolio
How many stocks do you need as per your portfolio, the maximum, minimum limit and portfolio risk. Do you need debt, the power of concentrated portfolio and long-term impact of it.
- When to Sell and When NOT to Sell
How to control your emotions to hold on to winners. With some case study on building wealth through stock markets.
- The Power of Dividends
My favorite part of this guide. How dividends beat salary and ALL other investment options. A completely different outlook on stock markets that you’ve never thought of.
- Mistakes to avoid that causes huge looses
List of 12 simple but deadly mistakes made by almost every investors. This is the reason why stock market investing looks difficult and why people end up losing their money. The most important lessons in investing before we finish the book.
As a bonus, I’ve also included tools and screener to evaluate companies in few minutes without doing any calculations.
How is this guide different from other books out there?
- Most books have one point to make. They make it, and then they give you example after example after example after example, and they apply it to explain everything in the world. One of the reasons why the mid section of each books becomes so boring. I’ve read hundreds of books and I know it.
- But this one is a step by step guide on all the aspect of investing and to become rich.
- Own your adventure. Once you’ve read the book, you can pick up any chapter where you think you are weak and reread. For example, during the market crises, read the “When to Buy” chapter. It’ll guide you and give you confidence to make the move when everyone else is afraid.
- There aren’t any books on how to buy, when to buy and at what price to buy. Having a book like this is must. It’s better to have one good book than 100 friends.
- I’ve covered important financial concepts that are taught in Business Schools. Without those concepts, you’re going to have a very hard time understanding investing.
- This guide is about picking your own stocks as a DIY investor. Because we have no restrictions like a mutual fund manager and if used wisely, you can beat the mutual fund returns easily and consistently. A small 2%-to-3% gain over other funds in the long-term gives a HUGE overall returns. That’s magic of compounding, covered inside.
- A guide with extensive research on what is actually needed to invest in the stock market. No bullshit, just condensed relevant material.
- I’ve also included various other investment classes and their arguments (for example Gold, Real-estate, Bank deposits, Mutual funds, etc.) that I personally researched in my early years when I was new to the investing world.
I’m 100% confident this is going to be the best investment you’ll make this year. The value that you’ll get will be much more than you can imagine.
Read. Understand. Eliminate fear. Get confidence. Invest like the Pros. Change your mindset and achieve financial freedom as soon as possible.