How to keep improving as an investor
Well the last 3 words can be safely dropped from the title. How to keep improving is common to all fields…
- You must want to improve in any field: clearly I don’t want to improve as a photographer, cyclist or even as a runner. It is my hobby, I will take some photos do some cycling and do some running, but I am NOT trying to improve. I am only trying to be active and a little fitter. So if I don’t want to improve as a runner, nobody can help me. So ask yourself “do you want to improve as an investor”. When I say ‘investor’ I mean PORTFOLIO INVESTOR, not just an equity picker.
- Read books: Do a SIP here also. Say 30 pages a day. Or 50 pages a day. On zillions of topic – reading around the subject is as important as reading about the subject. Remember not long ago Behavioral finance was ‘around’ the subject, not about the subject.
- Manage your time well: If you want to meditate, or think, keep it as a deliberate effort. Make sure that you manage every bit of time you have, and get adequate sleep. Don’t waste time. It is your responsibility.
- Read books from Ramakrishna Mission and Bharatiya Vidya Bhavan – sorry this has to be told as a separate post, it is too important.
- Listen to high quality podcasts. On investment, meditation, upanishads, ….there is just too much to be learnt. Watch videos on subjects of your interests.
- Join INVESTING groups – stay away from trading groups – try to attend their meetings, speak at those events, and be part of the organizing teams. If there is none, start an investing club.
- Work towards a Goal – even in investing, or health, we need a goal. It is just useful. A goal gives you the route to take.
- Get an adviser – for a fee – who will review your portfolio – whether you have made it yourself or used another adviser.
- Meditation: I have written a lot on this. Improves mental strength.
- Practice old passions. Whatever scared you when you were a kid – push the boundaries. Ask for a discount in a 5* hotel shop. Its worth the effort. Just for a kick.
- Get feedback and critique
- Keep an investment diary, and track your investments – and get feed back on the process.
- ….12 is enough I guess. Just do it.
john harry
thank you for sharing it.
Moneypitara
Thanks for sharing the information. Could you suggest some good books related to investment in mutual funds.
Narasimmamurthy
Subramoney’s recommended books to read
Some of the reviews may also be available online – in the personal finance section of myiris.com. Books have been listed completely at random – and I have intended it to look like an index. Keep coming back to this page – will add short summaries or comments on each book from time to time as well as full reviews. One of the links on the blogroll is a quaint friendly neigbourhood book shop – twistntales. The other place where I have bought most of these books is bookzone.com based in Mumbai.
A Random Walk Down Wall Street by Burton Malkiel.
Jeremy Siegel’s Stocks for the Long Run
Commonsense of Finance – Dr. Prasanna Chandra – get the basics of finance and accounts from here so that you understand concepts like P&L, B/ Sheet, write offs, taxation, etc.
Analysis for Financial Management by Robert Higgins.
Accounting Shenanigans – do not try to read it unless you are a CA or well versed with practical accounting..
Why Smart People Make Dumb Money Mistakes by Gary Belsky and Thomas Gilovich.
Parag Parikhs’ book on Behaviourial finance has brought some Indianness to this science! The book is called Stock to Riches.
Roger Lowenstein’s Making of an American Capitalist.
Benjamin Graham’s The Intelligent Investor is a must-read. But it can be kind of painful for today’s kids who do not like to read about bond valuation. However, if you realise that bond valuation is the basis from which equity valuation evolves, you will appreciate this book better!
Phil Fisher – Common Stocks and Uncommon Profits
Speaking of Phil Fisher leads us to Ken Fisher – and his book “The Only 3 questions you need to know” is also an excellent book to read, and as useful as his father’s book. It clears a lot of cobwebs – turning the PE ratio is a useful example!
Peter Lynch’s Beating the Street is the journal of a successful money manager, who is also a good communicator. CIOs should do their job well and also be able to communicate their skills and strategies.
You Can Be a Stock Market Genius by Joel Greenblatt –it’s relatively short, full of case studies, and engagingly written.
John Train’s Money Masters of Our Time and The New Money Masters
Reminiscences of a Stock Operator – Edwin Lefevre. Reads like a pot boiler!
Seth Klarman’s Margin of Safety.
Marty Whitman’s The Aggressive Conservative Investor- I personally found this a difficult read!
Ameya
Point # 5 – “optimal finance daily” is a great personal finance related podcast- its more tuned to the western world but the core message is great to increase financial acumen!