1 Dec Smart and successful way of investing calls for a thorough understanding of behavioral finance not just market sentiments, crowd behavior or. Value Investing And Behavioral Finance. Front Cover. PARIKH PARAG. Tata McGraw Hill Education Pvt. Limited, – Electronic books. Value Investing and Behavioral Finance: Insights into Indian Stock Market Realities [Mr. Parag Parikh] on *FREE* shipping on qualifying offers.

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An understanding of these emotions is primary to become a successful investor. Pranjal Kamra rated it it was ok Dec 13, Chapter 5 discusses Growth Investig. The reason is that the losses are due to high interest rates and when the cycle picks, the revenues increase but the interest costs remain the same or they decrease.

Value Investing And Behavioral Finance: Insights Into Indian Stock Market Realities

Tuesday, Behavuoral 9, Book Review He will understand that during bull market there will be availability of a lot of positive news availability heuristics not all of which may be correct. Some of them are: Sep 24, Karthik Chinni rated it liked it. A good business bought expensive is a bad investment. Akshay Singh rated it really liked it Mar 01, I think this comes under that category because some things from this book went into basic frame work ffinance principles.

Value Investing and Behavioral Finance by Parag Parikh – Review by Manish Bansal

This book was written inwhen flnance value investing and behavioral finance by parag parikh major bull run from to was winding down. At the time of writing this book the Indian parikj had corrected from a high of to about Mukesh Singh rated it really liked it Mar 14, The chapter is filled with generalizations, cliches and platitudes. Commodity investing is the focus of Chapter 6.

Also a very rare finding because very very few Indians have contributed to the field of behavioral finance.

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Market goes through the phases of so called emotional disorders under fear and greed. When tide turns, sector bubble can crash very fast. It says that many of us are lazy, greedy, ambitions, selfish and ignorant.

Personal heuristics include Group Thinking – where value investing and behavioral finance by parag parikh sacrifice your views to become a part of a group, False Consensus Effect – tendency to overestimate the percentage of people we think would agree with us, Buyer’s remorse – tendency to regret parikn decisions if they go against us begavioral the short-term, Ambiguity Effect – Depending on external inputs to reduce uncertainty of stock purchase and reduce ambiguity looking for validation in message boards, for exampleHerding, Recency effect – giving undue importance to recent negative stock and Confirmation Trap value investing and behavioral finance by parag parikh Tendency to seek confirmation of your decision through actions of others You may not want to buy when all others around you are selling etc.

The first is because of plain truths like why we behave like we do and the last is a new angle which can be useful for my study. One was that if all the mutual funds were investing in the same index, why do the performance of index funds vary across the funds and with reference to the index being tracked? Investors want answers to four questions.

Penny wise Book Review # Value Investing and Behavioral Finance: Author: Parag Parekh

In a way, this book’s style resembles the Taleb’s way of reminding again and again and again because it’s important. Market oscillates between Greed and Fear Mr. Your own psychology and ability to handle the emotional ups and downs of investing are likely balue be important determinants of your long run investment success.

Author illustrates growth trap through multiple examples from Indian Markets. It is very important to get out at the right time. Key recipe for success is the ability to plan our goals and the self discipline to ignore temptations and strive relentlessly towards achieving those goals.

Water has a lot of value in use whereas gold has a lot of value in exchange. He will be alert to the representative heuristics and will not invest in all the stocks in a sector just because the sector is going up. The glossary of this book provides an exhaustive list of heuristics that people not necessarily investors use in decision making.

The Chapter points out that ever sinceinvestors have lost money in more IPOs than they have made. Smart and successful way of investing calls for a thorough understanding of behavioral finance not just market sentiments, crowd behavior or company performance.

Nov 21, Gaurav Patel rated it it was amazing. Due to confidence in their assessment, one under-reacts to negative information relating to the stock, Bystander effect: Kaustav Ganguli rated it it was ok Jul 27, Want to Read saving…. Despite the stock value investing and behavioral finance by parag parikh a growth stock, the investor do not gain any return since he paid a high price pqrag the stock. Value Research has given 5 Star rating to some index funds and 2 Star rating to others.

No eBook available Amazon. Amit vslue it liked it Value investing and behavioral finance by parag parikh 21,