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I'm from India too. I don't deny that the books are useful; But with respect to advice on index investing, they aren't tuned as much to developing markets (spea

I'm from India too. I don't deny that the books are useful; But with respect to advice on index investing, they aren't tuned as much to developing markets (speaking more about Random Walk here which heavily leans on it). Nifty50 is too lopsided by the heavyweights, even compared to tech-heavy S&P500, and most ETFs/funds here have comparatively high tracking errors and low liquidity. It's probably better to read a few country-specific books to get better context and compare.

thewhitetulip 6y ago
True, the index and mutual fund part is pretty much useless. As is the calculation and market sanity There is no equivalent of Reliance in Nasdaq or NYSE. But if Value investing suits you, you can take up the books others have suggested and get profits I used to be a value investor, but these days I'm not. I still look for good companies available for discount, but if it goes 10% up I immediately sell it. Intelligent investor is good for this: you can decide what type of investor you are. That gives you an intellectual framework to work with stocks. For eh, I bought ITC for 179 yesterday, it went down to 176 today, but I did not immediately freakout, I am holding to the stock coz it has value and company is financially strong and product wise very diverse. I've already got some minor profit and dividend from ITC in the past. Get the basics, follow a framework but also be aware that this is just luck in the end. You can't predict a stock market so if you think you can invest all money directly in stocks then its not a good idea Some in stocks some in RD/FD (not option in US as interest rates are like 1% or so compared to our 5.5%. but let Modiji stay for another 5yrs and FD rates will probably go 0) I'll say don't fall in the mutual fund trap. They're adverting it so heavily that I stopped even thinking about it. As a quote goes: a man visited a Index fund manager's lavish boat. Excellent boat. But after the party he asked "where are the customer's yatchs?" Indian MF/Index funds don't provide you a report asto where they r investing like Warren Buffet provides to his shareholders. They're opaque and u hope to get returns. Nobody I know has actually got 30% or so returns. Edit: sorry if I avoided pedantic I thought you are the one who asked the qn. I realise that you already know what I was trying to say.

thewhitetulip 6y ago

True, the index and mutual fund part is pretty much useless. As is the calculation and market sanity There is no equivalent of Reliance in Nasdaq or NYSE. But if Value investing suits you, you can take up the books others have suggested and get profits I used to be a value investor, but these days I'm not. I still look for good companies available for discount, but if it goes 10% up I immediately sell it. Intelligent investor is good for this: you can decide what type of investor you are. That gives you an intellectual framework to work with stocks. For eh, I bought ITC for 179 yesterday, it went down to 176 today, but I did not immediately freakout, I am holding to the stock coz it has value and company is financially strong and product wise very diverse. I've already got some minor profit and dividend from ITC in the past. Get the basics, follow a framework but also be aware that this is just luck in the end. You can't predict a stock market so if you think you can invest all money directly in stocks then its not a good idea Some in stocks some in RD/FD (not option in US as interest rates are like 1% or so compared to our 5.5%. but let Modiji stay for another 5yrs and FD rates will probably go 0) I'll say don't fall in the mutual fund trap. They're adverting it so heavily that I stopped even thinking about it. As a quote goes: a man visited a Index fund manager's lavish boat. Excellent boat. But after the party he asked "where are the customer's yatchs?" Indian MF/Index funds don't provide you a report asto where they r investing like Warren Buffet provides to his shareholders. They're opaque and u hope to get returns. Nobody I know has actually got 30% or so returns. Edit: sorry if I avoided pedantic I thought you are the one who asked the qn. I realise that you already know what I was trying to say.