Simplicity in life and investing, Delayed Gratification, Be a learning machine, Achieving financial independence, Humility and Good Karma
Books are real source of inspiration and knowledge. Through book reading, a reader can get the writer’s knowledge achieved through hard work and life experience for decades by reading his book in few hours .
These life experiences make the reader’s knowledge enhanced.
Recently I read the book The Joys of Compounding: by Gautam Baid which is a amazing book for the retail investors like you and me. You as a retail investor can get the framework and mental model for successful life and successful investing .
About the Author
The author of the book “ The Joys of Compounding: The Passionate Pursuit of Lifelong Learning,”Gautam Baid is a CFA, a value investor and portfolio manager .
He worked as a senior analyst in Citigroup and Deutshche Bank in Mumbai,London and HongKong .
He was also associated with investment firm in Salt Lake city, Utah as a portfolio manager. He is founder of Stellar Wealth Partners Private Limited), a SEBI-registered Research Analyst firm.
About the book
This book, The Joys of Compounding the author ‘, Gautam Baid deep dives on the ins and outs of value investing along with implementation guide to achieve the great wisdom about life .
In this book the author has mentioned deep thought about wisdom of investing along with lifelong learning.
Gautam Baid has dedicated this book to his Gurus like Warren Buffet ,Charlie Munger and Mohnish Pabrai etc . He has also got inspiration from work of Nassim Taleb and other writers .
He advocates the path of lifelong learning and this learning keep on compounding in our life.
Warren Buffet has said “the best investment you can make is an investment in yourself“
This means that if someone is involved in self improvement he is really investing in himself slowly .
If someone keeps on reading 100 pages per day, he becomes a learning machine in long term
“Those who keep learning will keep rising in life” Charlie Munger
He explains in his book regarding life principles of investing along with self development and enhancement of knowledge as per his experience of Investing.
The author’s quest of lifetime learning through continuous reading, expression, and thinking definitely inspires the investors to hone ups their skills.
This offers new opportunities to learn and re-learn critical lessons that will make us better investors and individuals.
The book”The Joys of Compounding ” has been divided into five major parts and 35 chapters .
The author Gautam Baid starts his book by focusing in “Investment in yourself” and to become a learning machine for life time.
He emphasizes on accumulating worldly wisdom.
The power of working on your passion keeps you ahead from all because a person following the passion can be creative in your actions.
You can keep on working tirelessly on your passion.
Author further writes about choosing the right role models in your life and keep them follow religiously till you get success in life .
Like value investor Mohnish Pabrai openly accepts that he has completely copied Warren Buffet in his investing life.
By copying Warren Buffet, Pabrai has achieved a great success in investing life.
Author advocates that you should live life according to your inner score and stick to this inner score card even in bad times.
He further adds details on decision making and importance of check list in investing.
He clearly explains the intelligent investing, capital cycles, investing in special situations, value investing and pattern recognition in his book.
Key takeaways from the book
1. Simplicity in life and investing
“Life is really simple but we insist on making it complicated”
Gautam Baid illustrates that the life is to be made simple which ultimately makes the life easy and results in successful investor.
Practicing minimalism has brought peace and simplicity in author’s life.
If someone can delay instant gratification and think long term he can definitely become a good human being and a good investor.
In this author has mentioned the experiment of Stanford Marshmallow, the famous experiment of delayed gratification. By this attitude of delayed gratification ,the investor keeps patience and handles the bear market situation intelligently .
3. Be a learning machine
‘Those who keep learning keep rising in life.’ Charlie Munger .
The successful investor should have the habit of reading the different topics and connect the dots for overall thinking process.
Human emotions and behavior is part and parcel of investing which needs to be enhanced with due course.
You as an investor if maintain an investing journal and create a check list for investing ,will become a long term investor with higher probability of success.
4.Achieving financial independence
Achieving financial independence is the ultimate goal of our life. The person can follow his passion and spend his life in his own way.
Long term investing and effect of compound interest makes an investor financial free for sure.
5. Humility and Good Karma
You need to be a superior person with a wisdom of humility to get success in business and investing.
High ethics in life and ability to be humble mind set allow you to seek and learn new ideas.
In investing, humility to accept the mistake and eliminate the mistake as early as possible is key to success.
Gautam Baid’s book is a inspirational change from the usual investing books.
This book educates us how to follow a lifestyle of self-improvement and knowledge enhancement.
This book teaches us about the dedication to improvement in investing as well as personal life.
I will recommend to every retail investor to read the book and keep on progressing on the path of compounding .
This book definitely solve the problems of retail investors.