Finance World
Finest books to become a great investor.
“There is no friend loyal as a book“- Ernest Hemmingway
“I look at the books as being a form of activism. Sometimes they’ll show us the side of the world that we might not have known about“- Angie Thomas
“The reading of all the good books is like the conversation with the finest minds of past centuries“- Rene Descartes
I am starting this article with quotes by famous personalities on love for books. In today’s era, information reaches a reader with just one tap. 5G, Artificial intelligence (AI), cloud computing, and the recently introduced ChatGPT enables readers and learners to swiftly gain data. The ChatGPT is a recently developed Chatbot that is expected to replace humans with AI technology to attain highly accurate information. Though a human can be replaced by a Robot, a book is still an asset that is irreplaceable.
In this article, we will learn about 4 interesting and innovative books in Indian and World history which help an investor enlightened with market concepts
- The intelligent investor
- One up on a wall street
- The Psychology of Money
- Coffee can investing -The low-risk road to stupendous growth
Let us see about each of the books in detail
The intelligent investor
The crux of the book lies in “Value investing“. This book provides an investor with a strategy for finding undervalued stocks of companies that has the potential to grow and perform well in the long run. “The Intelligent Investor” is written by Benjamin Graham. It was published in the year 1949.
Who is Benjamin Graham?
Benjamin Graham was a British-born American Economist, professor, and investor. He graduated from Columbia University at the age of 20 and eventually started his career on wall street. He was the founder of the Graham-Newman Corporation which was an investment firm founded by Benjamin Graham and Jerome Newman.
Benjamin Graham is known as the father of “value investing”. Investors’ psychology, minimal debt, buy-hold investing, fundamental analysis, concentrated diversification, the margin of safety, activist investing, and contrarian mindsets belong to his philosophy.
What is the book about?
- The author mentions the importance of value investing.
- According to the author, one should not follow the short-term trends in the market, without taking into account the fundamental analysis of the company. In other words, it says that, if you know the true value of the stock, we can save money to buy it.
- Another interesting allegory of Graham is Mr. Market. He is a narrative figure who knocks on the investor’s door every day to quote a price to buy or sell shares. Sometimes the price seems plausible and other times it seems ridiculous. The basic idea behind it is that the investor should concentrate more on fundamentals, and dividends rather than concentrating more on the irrational behavior of the market.
This book is recommendable for a novice investor and also an expert trader.
One up on Wall Street
One line of this book is ” How to Use what you already know to make money in the Market”. This book provides an investor the directions for sorting out the long shots from the no shots by spending just a few minutes with the company’s financial statements. The book ” One Up on Wall Street” is authored by Peter. S. Lynch and John Rothchild. And the publishing year is 1989.
About the author
Peter Lynch is an American investor, mutual fund manager, and philanthropist. One of his notable achievements was averaging a return of 29.2% annual return which was double the return of the S&P 500 stock market. This was happening when he was managing the Magellan fund at Fidelity Investments. During his tenure there he achieved $14 billion in assets under management from $18 million.
What is the book about?
- In this book, the author has mentioned that investments are about believing in fundamentals, and it is not about buying stocks but buying stakes in a company via the shares route.
- An expert is not necessary to take investment decisions, but an amateur with proper fundamentals is sufficient to win the stock market
- He says picking stock is an art. And the only math we need to invest in is primary school math.
- The author mentions about things to think before investing in a stock. 1) Do I own a house? 2) Do I need money? 3) Do I have patience, tolerance for uncertainty, and a willingness to do research?
Other highlights of the book are
- Pick stocks in which you have an edge over others
- Understand the story behind the opportunity company
- Understand the personality of such companies
- Stay away from hot picks
- Building right portfolio
- When do you sell? – Do you sell winners when they are up? and hold on to your losers?
The synopsis of the book tells us focusing on the operating performance and dividends of the firm will help an investor rather than following the changing price of the stock. If a person wants to create long-term wealth then he has to commit completely to it by investing time and energy towards it. As a result, an investor has to ignore short-term price movements and continue investing.
The Psychology of Money
The crux of the book lies in understanding a better relationship with money and making better financial decisions. It shows how the psychology of money works for and against you. ” Psychology of Money” was authored by Morgan Housel. Morgan Housel is a partner at The collaborative fund and a former columnist at The Motley Fool and The wall street journal. This book sold over 3 million copies and has been translated into 53 languages.
What is the book about?
The key takeaways from the book are
- Theory isn’t reality- The author says ” We are not spreadsheets, as much as reading can inform us about what has happened in the past, like stock market crashes or how stocks have trended up. Learning something from the book is completely different from a real experience”.
- Luck and risk- “It is easy to convince yourself that your financial outcomes are determined entirely by the quality of your decisions and actions, but that’s not always the case. A bad decision can lead to good profits or a good decision can lead to poor outcomes. We have to account for the luck and risk”.
- Lessons from Buffet- “When it comes to money, someone will always have higher money than you, it’s okay to pursue more money, but don’t start making risky bets that put what you have at risk for something that you don’t need”.
- Getting money vs keeping money – ” Getting and keeping money are 2 different skills. While getting money necessitates risk-taking, hard work, and an optimistic disposition. Keeping money is a different skill that requires you to mitigate risk and avoid greediness.
- Cash is not the enemy-” Some people believe it is wise to invest all the money we have in our hands and avoid storing cash”. But what this book says is ” Imagine if you have invested 95% in stocks and have 5% in cash. The stock market crashes by 20-25%. Depending on how the crash affects the psychology we are more prone to panic selling as we had more money in stocks and less in cash. If larger cash reserves save you from making one big financial mistake, it might be the best move for your portfolio”
And much more information on the psychology of money is mentioned in this book.
Coffee can investing The low-risk road to stupendous wealth
The crux of the book lies in growing your money 4 to 5 times whilst taking half the risk compared to the entire market. The author follows the coffee can approach high-quality low-risk investing. This book is authored by Saurabh Mukherjea and was published in the year 2018.
About the author
Saurabh Mukherjea is the founder and chief investment officer of Marcellus Investment Managers. He is a CFA charter holder with a BS in economics and an MS in economics from the London School of Economics. He was also the former CEO of Ambit Capital and played a key role in Ambit’s rise as a broker and wealth manager.
What is the book about?
This book is one of the favorites of Prasenjit Paul who has 10 years of experience in active stock market investing and successfully identifying multi-bagger stocks. He says “This book offers a low-risk, long-term investment approach by investing high quality stocks. There are lots of examples from the Indian stock market backed by data and charts supporting the method. Not for traders, the book will help serious long-term investors seeking wealth creation over the long run.
The description of the book is explained as follows:
Most people invest in usual assets such as real estate, gold, mutual funds FDs, and stock markets. It’s always the same four or five instruments. All they end up making 8 to 12 % per annum. Those who are exceptionally unfortunate get stuck in the middle of a crash and lose all the money. This book helps investors achieve a 20% compound annual growth rate (CAGR) in investments. The bestselling author of Gurus of Chaos and the Unusual Billionaires, Saurabh Mukherjea shares his wisdom. The author will show how to go about low-risk investments that generate great returns.
I will end this article with the quote “Think before you speak, read before you think”. But in investment books knowledge is alone not enough to succeed. Knowledge from books, own experience in winning and losing, ability to forecast the profitability of a business, and analyzing fundamentals and dividends all work in combination to taste success!
To know more about long-term investment strategies visit here.
This week, if you’ve been keeping an eye on the stock market, you might’ve noticed something unusual. While the small cap and mid cap markets took a serious dive, Muthoot Finance seemed to just avoid it, falling by a mere 2%. So, what’s their secret?
What is the business of Muthoot Finance?
First up, Muthoot Finance has a strong foothold in gold loans. Now, why does this matter? Well, when other investments seem risky, people tend to fall back on gold because it’s considered a safer bet. With gold prices staying high, Muthoot’s gold loan business is like a stable ship in a stormy sea.
Muthoot Finance target price by Kotak
Kotak Institutional Equities is pretty optimistic about Muthoot, recommending a “buy” with a target of Rs 1,500. They think Muthoot is in a prime spot to grab a bigger slice of the gold loan market. Plus, with some Non-Banking Financial Companies (NBFCs) hitting a rough patch, Muthoot has a clear ground to expand and grow further. Unlike NBFC, Muthoot has a strong ground presence with offices and branches, they have physical repo with their customers, unlike NBFC who operate from AC offices.
New Friends and New Frontiers
Muthoot isn’t just sitting pretty with its gold loans; it’s also making moves. It teamed up with Evfin to finance electric two-wheelers across India. And there’s more – Muthoot FinCorp has brought Veefin Solutions on board to kick off supply chain finance operations. This means they’re planning to lend a hand to small and medium businesses, helping them keep the wheels turning. So, its a great news that Muthoot is expanding into fields that are not dependent on gold loans alone.
Spreading Their Wings
Muthoot Microfin, a part of the Muthoot Group, is pushing into new territories too. They’ve just set foot in Telangana and have their sights set on Andhra Pradesh next. This move is about bringing more people into the financial fold, especially in places where banking services might be hard to come by. This gives an edge to Muthoot over banks and NBFC.
Are you wondering whether to invest in Muthoot Finance or Manappuram Gold? Take a look at this:
So, What’s the Deal?
While the market’s mood swings have sent some companies into a pit, Muthoot Finance has managed to stay stable. Thanks to its focus on gold loans, strategic partnerships, and expansion plans, it’s not just surviving; it’s set to thrive. So, while the rest of the market might be catching its breath, Muthoot is marching on, steady as ever.
Keep following us for more such latest news on TradeAlone.
Hello, digital pioneers and fintech enthusiasts! Let’s dive into a groundbreaking announcement for Infibeam. Infibeam Avenues Ltd, an AI-powered financial technology, is embarking on an exciting journey by acquiring a 20% stake in XDuce. XDuce is a mastermind in enterprise Application and AI development based in the United States. This bold move involves an investment of USD 10 million. This also marks a significant milestone in Infibeam Avenues Ltd’s global expansion narrative.
XDuce: A Hub of Innovation
Nestled in the heart of New Jersey, XDuce boasts a team of over 150 software developers. They’re a team behind the curtain for marquee clients like Bank of America and Morgan Stanley, to name a few. XDuce’s expertise in business application implementations and transformation is nothing short of legendary in the financial and insurance sectors of North America.
A Fusion of Giants
So, what happens when Infibeam Avenues Ltd and XDuce comes together? Infibeam Avenues Ltd wants to merge it’s AI Solutions and CCAvenue Payments business into the network that XDuce has built. This collaboration is about expanding business footprints, revolutionizing how AI-driven technologies are employed in fraud detection, authentication, and risk identification in the financial sector of the US.
Redefining Financial Technology
Imagine a world where transaction fraud is no longer a looming threat, thanks to state-of-the-art AI technologies. That’s the vision Mr. Jay Dave, CEO of XDuce, and Mr. Rajesh Kumar SA, CEO of Phronetic.AI, share. By integrating PhroneticAI abilities with XDuce’s solutions, they will offer businesses and consumers in the US with security and efficiency.
The Road Ahead
According to Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd, international business currently contributes less than 10% to the company’s total revenue. But with strategic moves like this, they’re aiming for international business to soar to 30% of total revenue in the coming years.
Infibeam Avenues Ltd at a Glance
Infibeam Avenues Ltd is at the forefront of offering digital payment solutions and enterprise software platforms across the globe. With a transaction worth INR 4.5 trillion (US$ 54 billion) processed in FY23, and a client base of over 10 million. Spread across digital payments and enterprise software platforms, they’re leading digital revolution.
Wrapping Up
The strategic investment in XDuce is a bold step towards Infibeam Avenues Ltd’s vision of global expansion and innovation.
Stay tuned with Tradealone, as we continue to follow this exciting journey of Infibeam Avenues Ltd. Stock price for Infibeam closed 7% up today. We also see a continues profit growth for Infibeam Avenues over the past 4 years. Although, we cant recommend a buy or sell call for the stock, however we feel this stock deserves your attention.
Finance World
Satin Creditcare Expands its Reach by entering Telangana and Andhra Pradesh, stock has doubled so far this year
In a country where financial inclusion remains a major yet challenging goal, the expansion of services to underbanked regions marks a significant step forward. Satin Creditcare Network Limited (SCNL), a leading name in microfinance, announces its strategic entry into Telangana and Andhra Pradesh. This move not only amplifies SCNL’s presence to 26 states and union territories across India but also underlines its commitment to empowering the economically marginalized communities with vital financial services.
A Leap Towards Nationwide Financial Inclusion: SCNL’s mission to drive financial inclusion is more than just a business expansion; it’s a pledge to reach the unreached. The opening of two new branches in Telangana (Warangal and Huzurabad) and one in Kadiri, Andhra Pradesh, is a testament to SCNL’s dedication to making financial services accessible to all, especially in rural and semi-urban areas where banking facilities are scarce.
Why Telangana and Andhra Pradesh?
The choice of Telangana and Andhra Pradesh for SCNL’s latest expansion is strategic. Both states have shown promising economic growth yet house significant populations that lack access to basic financial services. By stepping into these states, SCNL aims to fill this gap, offering microfinance solutions that can serve as a catalyst for economic empowerment and sustainable development. Moreover, Telangana is a fast growing hub for Pharma industry as the state capital Hyderabad leads the way.
SCNL’s Blueprint for Empowerment
SCNL’s approach to empowerment through financial inclusion is holistic. Focused on rural India, with 76% of its operations dedicated to rural communities across 97,000 villages, SCNL is not just providing financial services but is also contributing to the rural economy’s growth. This expansion is a stride towards enabling access to credit for the underserved, thereby fostering an environment of economic resilience and growth.
A Message from the Leadership
Mr. HP Singh, Chairman cum Managing Director of SCNL, remarks, “Our expansion into Telangana and Andhra Pradesh is a significant milestone in our journey towards a financially inclusive India. It’s not merely about increasing our geographical footprint; it’s about touching lives, empowering the marginalized, and contributing to the nation’s economic fabric. We’re here to make a difference, one individual, one community at a time.”
Ashirvad Microfinance is a fast growing company as well. Check it out if you are interested.
Beyond Expansion – A Look at SCNL’s Innovations
SCNL’s innovations extend beyond traditional microfinance. The institution’s portfolio includes loans to MSMEs, affordable housing loans through its subsidiary Satin Housing Finance Limited (SHFL), and the commencement of MSME business through Satin Finserv Limited (SFL). These initiatives demonstrate SCNL’s commitment to diversifying financial solutions that cater to various needs of the underserved.
The Road Ahead for SCNL
As SCNL carves new paths in Telangana and Andhra Pradesh, the future looks promising. This expansion is not just about growth but about deepening the impact of financial inclusion across India. With continued innovation and a steadfast commitment to its mission, SCNL is poised to create significant strides in empowering communities and fostering economic development across the country. Moreover, the stock price for Satin Creditcare has almost doubled in the last one year.
Conclusion: SCNL’s expansion into Telangana and Andhra Pradesh marks a new chapter in its mission to facilitate financial inclusion across India. By reaching out to the economically marginalized sections of society, SCNL strengthens its role as a catalyst for economic empowerment and sustainable development. As we watch this journey unfold, the prospects for a financially inclusive India appear brighter than ever. Despite that we do not see any positive signs from the revenue and profit growth of the company over the last 5 years. Thus, we feel that investors must be cautious while investing here.
Remember that microfinance companies also face competitions from the major banks. However, as this move is towards uncharted regions of Telangana and Andhra, we do not think that the banks would pose any risk to Satin Creditcare.
Call-to-Action: We invite you to join the conversation: How do you think SCNL’s expansion will impact financial inclusion in Telangana and Andhra Pradesh? Share your thoughts and insights in the comments below. Let’s discuss how financial empowerment can transform lives and communities. Also, please follow Tradealone for more such latest updates.
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