"Coffee Can Investing" by Saurabh Mukherjea Book Review: Profile Traders
With the Indian markets outperforming the global markets, the Indian investor still stands a chance to bask in the huge growth potential it has to offer. As an investor, it is only that you are aware of different ways of investing in the Indian markets.
Coffee Can Investing is one of them. Yes, you heard it right. We will get to see what Saurabh Mukherjea, CEO of Ambit Capital, one of India’s largest wealth managers, has to offer.
Common Investment Mistakes
‘Risk comes from not knowing what you are doing.’ —Warren Buffett
Saurabh starts the book with a storyline of Mr. Talwar. The story revolves around every other Indian family that takes pride in a job, marriage, and home.
Investments were in the form of fixed deposits and physical gold in the late 1900s. There was hardly a small percentage of Indians who invested in the stock markets wisely.
Just like every other person who starts his investment journey, Mr. Talwar did so as well. People who invest based on tips or during teatime gossip end up making the same mistakes over and over again. Here are some common mistakes any investor would relate to.
Chasing short-term gains.
The thrill of timing the markets.
Ignoring high commissions & fees.
Ignoring taxes & inflation.
Throwing all eggs in one basket.
No objective or long-term vision.
Trading instead of investing.
Coffee Can Investing
‘For indeed, the investor’s chief problem—and even his worst enemy—is likely to be himself.’ —Benjamin Graham, The Intelligent Investor