Value Investing And Behavioral Finance: Insights Into Indian Stock Market Realities
Smart and successful way of investing calls for a thoroughunderstanding of behavioral finance not just market sentiments,crowd behavior or company performance. This book studies investingand behavioral trends in Indian capital markets, and shows thefollies of collective behavioral biases and their impact oninvestor decisions and returns.'When others are greedy be fearful and when others are fearfulbe greedy" - ill-timed bouts of greed and fear among investors makestock markets volatile. Rational and successful investing is allabout restraining and channelizing these emotions and understandingbehavioral finance, not market sentiments, crowd behavior orcompany performances.At a time when market upheavals are eroding investors'confidence, dooming life's earnings and corporate fortunes, andwhipping up mass hysteria-Value Investing and Behavioral Financecomes as an antidote to investor anxiety and a guide to sane andsafe investment decisions. Using investing trends in Indian capitalmarkets over the last three decades, it shows how collectivebehavioral biases affect investment decisions, returns and marketvagaries.As a corrective, it spells out long-term value and contrarianinvesting strategies based on the principles of behavioral finance.Further, it advises on how to spot investment opportunities andpitfalls in commodity stocks, growth stocks, PSUs, IPOs, sectorsand index stocks. It also alerts the reader to a 'bubble' or crisissituation, and ways to identify and insure against it."…For Indian investors especially, the book is a must read!"Hersh Shefrin Author of Beyond Greed and Fear"…Extremely informative…complete in the coverage of all areas ofinvestor behavior and behavioral trends…" Y. M. Deosthalee CFO,Larsen & Toubro Ltd."…Provides the reader with the much needed framework to help himcarve his way to wealth by investing intelligently." Harsh C.Mariwala Chairman & MD, Marico Ltd."…A timely book offering a pragmatic way of understanding marketbehaviour and enabling better investment decisions." Ashok M.Advani Chairman & MD, Blue Star Ltd. "