Description
Taxmann Publications Stock Market Wisdom by T S Anantharaman
Excerpts from the Preface:
Q. How do you make a small fortune in the stock market?
A. Start with a large one.
A prime example of the Indian stock market’s potential is Infosys. If you subscribed to 100 shares of Infosys at its 1993 IPO at a price of INR 95 per share, you would own 1,02,400 shares of the company today. At an average price of INR 700 per share, that investment would now be worth over INR 7 Crores!
Introduction:
Taxmann’s Stock Market Wisdom highlights the great potential of the stock market while guiding investors to invest wisely and how to avoid its pitfalls. It is an attempt to assist investors to understand the following:
· How the market system operates?
· How one should invest money in it?
· How one can generate wealth through it over the long term.
The author has also explained how the markets have evolved, what their present stage is, where they’re headed, and, of course, how you can benefit, with the help of multiple case studies.
· Featuring the following case-studies:
o India’s Top 25 Years Return Chart
o World stock exchange performance
o The Roller Coaster Journey of the SENSEX from 100 to 41,000
o Amazing story of Reliance Industries – The first Indian company to enter the 10 Trillion Market Cap Club
o Avenue Supermarts Ltd. – The company that defies gravity
Reviewed by Motilal Oswal (Managing Director) | Motilal Oswal Financial Services Ltd.
“For any new investor who is starting his journey in stock markets, or even an old investor who has not been yet able to decode investment success for himself, this is a fine book to start or restart the journey, as the case may be.”
“The basics of investing and trading have been explained in a very lucid and simple manner and the complete spectrum of investing has been covered from history of the stock markets, the working of the stock markets, the basic of fundamental analysis, basics of technical analysis, concepts dividends, bonus, splits, buy backs, etc.”
“Most importantly, a large part of this book is about behaviour analysis and how it impacts the investor returns in this fascinating journey of stock market investing.”
Contents of the book are as follows:
· Why should you invest in the Indian stock markets?
· Evolution of the stock market in India
· Market and Interest Behaviour
· Right number of stocks in your portfolio
· Invest in winners, do not chase losers
· Buy it, Hold it, Forget it strategy
· Low PE vs. High PE, which one should you buy?
· Small vs. Large companies
· Benefit from Beaten Down Stocks
· Impact of current events on the stock price
· Pricing power
· Life expectancy of companies
· Dividend decisions
· Bonus shares, share split and right shares
· Buyback of shares
· Mutual funds and their relevance
· Value investing
· Investing in growth shares
· Lessons in wealth creation from Warren Buffett
· Trading vs. Investment
· Sensible investments – practical points
· Key to multi-bagger returns
· Basics of fundamental analysis
· Basics of technical analysis
About the author
T.S Anantharaman
T.S. Anantharaman has played a pioneering role in the Indian stock markets at regional and national levels. He was instrumental in developing the Cochin Stock Exchange, serving as its Vice-President from 1992 to 1994. He then founded the Peninsular Capital Market Group of Companies (PCML) and served as its Chairman and Managing Director between 1995 and 2008. At its height, PCML was one of the leading stock market intermediaries in the country, with over 250 locations nationwide, leading to its successful acquisition by Motilal Oswal Financial Services. He also served on the Executive Committee of the National Stock Exchange of India from 2002 to 2004. For a fifteen year stretch from 1991 to 2006, he wrote a popular weekly column on stock investing for the Malayala Manorama, one of the most widely-circulated newspapers in India. Mr. Anantharaman regularly speaks on the economy and capital markets to diverse audiences of investors, entrepreneurs, finance and management professionals, and students.
In last decade, Mr. Anantharaman played a key role in growing the CSB Bank from a small regional bank to a recognized financial institution in the national arena, first as a director and then as Chairman of the Board of Directors. He has also served on the Boards of several listed companies including Manappuram Finance, Eastern Threads, and Motilal Oswal Financial Services. He continues to serve on many Boards including that of Kalyan Jewellers.
In earlier career innings, Mr. Anantharaman was an accountancy expert for the United Nations, working for its International Labour Office from 1978 to 1985. In this capacity, he advised the governments of Botswana, Lesotho, and Gambia on subjects of accountancy, finance, and management training. He served as Head of the Department of Accountancy and Management Studies, University of Botswana, from 1976 to 1978, and wrote four books on accountancy and taxation that were used for accountancy training in Botswana. He co-founded with his brother T.S. Pattabhiram the Leo Pharma Group, one of the largest pharmaceutical logistics companies in the country and is presently Chairman of the Group.
Mr. Anantharaman lives in his hometown of Thrissur, Kerala with his wife. He is a proud father of two daughters living in America, the first of whom runs a busy accounting practice and the second of whom is a professor of accounting. He is an avid traveller, having visited over 50 countries worldwide. He is an advanced practitioner of Yoga and a keen student of the Bhagavad Gita and Indian spirituality.