Lynch was the former star manager of Fidelity’s multibillion-dollar Magellan Fund. He says that average investors can choose winning stocks as competently as Wall Street experts, only if they do a bit of their research. Our video (blog section) on investing in stock of companies whose products/services we regularly use was an idea picked up from his book. The idea is even more important in the Indian context as we are consumer driven economy. Stocks like Page Industries and Bata are classic examples that one would be able to relate to after reading the book.
“To buy when others are despondently selling and to sell when others are avidly buying requires the greatest fortitude and pays the greatest ultimate rewards.”-Sir John Templeton. “Rely on quantitative versus qualitative reasoning when it comes to selecting stocks”. This is precisely the idea behind QuantifyIndia, to help bring discipline, logic and restraint in our user’s approach.
If you are a budding quant and haven’t read this book yet, our suggestion is DO NOT miss out. Ken Griffin, Edward Thorpe, Jamie Simmons, Cliff Asyness are geeks you want to know about. And by the way if you thought mathematics cannot be used in the markets to make money this book will prove you wrong. They may not be the most celebrated people on CNBC but they are “DUDES” of financial markets.
“The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer. They will die poor.” Jesse Livermore’s life unfortunately ended on a similar note. Trading is by no means an easy game to sustain. QuantifyIndia suggests our users to read this book to understand technical analysis and emotions behind trading. Since Jesse operated in late 19th century and early 20th century, readers will find initial phases boring and outdated but if you can keep your patience through the book this is a gem and must for people passionate about trading. It will take you through emotions one goes through in stock markets (even applicable in today’s world). It’s our top favourite.