Value Investing and Behavioral Finance by by Parag Parikh

. . .For Indian investors especially, the book is a must-read! Hersh Shefrin Author of Beyond Greed and Fear “. . .Extremely informative. . . complete in the coverage of all areas of investor behavior and behavioral trends. . .” Y. M. Deosthalee CFO, Larsen & Toubro Ltd. “. . . Provides the reader with the much-needed framework to help him carve his way to wealth by investing intelligently.” Harsh C. Mariwala Chairman & MD, Marico Ltd. “. . .A timely book offering a pragmatic way of understanding market behavior and enabling better investment decisions.” Ashok M. Advani Chairman & MD, Blue Star Ltd. “. . . “When others are greedy be fearful and when others are fearful be greedy” – ill-timed bouts of greed and fear among investors make stock markets volatile. Rational and successful investing is all about restraining and channeling these emotions and understanding behavioral finance, not market sentiments, crowd behavior, or company performances. At a time when market upheavals are eroding investors’ confidence, dooming life’s earnings and corporate fortunes, and whipping up mass hysteria-Value Investing and Behavioral Finance comes as an antidote to investor anxiety and a guide to sane and safe investment decisions. Using investing trends in Indian capital markets over the last three decades, it shows how collective behavioral biases affect investment decisions, returns, and market vagaries. As a corrective, it spells out long-term value and contrarian investing strategies based on the principles of behavioral finance. Further, it advises on how to spot investment opportunities and pitfalls in commodity stocks, growth stocks, PSUs, IPOs, sectors, and index stocks. It also alerts the reader to a ‘bubble’ or crisis situation and ways to identify and insure against it. Value Investing and Behavioral Finance, a timely offering from a seasoned investment strategist, is a must-read for stock brokers, bankers, lay inves