Stocks To Riches Insights | On Investor Behaviour By Parag Parikh Pdf __top__

Introduction

Why "Stocks to Riches" is Different from Every Other Finance Book

Most Indian investors grew up on a diet of "Value Investing" as preached by Benjamin Graham and Warren Buffett. Parag Parikh respected these principles but realized they were incomplete when filtered through the human brain. Introduction Why "Stocks to Riches" is Different from

Here is some content related to "Stocks to Riches: Insights on Investor Behaviour" by Parag Parikh: Trader: Views stocks as scrips for speculation

Imagine you own a small business. Every day, your neighbor, Mr. Market, shows up and shouts a price for your share. Some days he is euphoric (offering a ridiculously high price). Other days he is depressed (offering a ridiculously low price). You are free to ignore him or deal with him. He identified two specific behaviors that destroy wealth:

• Trader: Views stocks as scrips for speculation. Watches prices every minute. Asks, “Will the price go up tomorrow?”
• Owner (Parikh’s ideal): Views stocks as fractional ownership of real businesses. Asks, “Will this company be more profitable 10 years from now?”

He identified two specific behaviors that destroy wealth: