Book Review: The Science of Stock Market Investment

Sekhar's Page Wishes you a Happy, Prosperous and Safe Deepavali. 

On this auspicious occasion I wanted to present a book review of an interesting personal finance/investing book "The Science of Stock Market Investment - Chellamuthu Kuppusamy". The review and opinions below were received from Mr.Perumal Karur, who talks about the book, its style of presentation, simplicity, practicality, etc.  Now, its over to Perumal....

"Let tell you this without any shame. I have never thought of writing a book review so far in my life. But after reading this book I could not resist my urge to put together my views about it and have it shared with others.

 Image Source: From the Author

The books I am talking about is about a dry subject.  Despite everybody loving money, none of us really show interest to read the subjects related to money – for it is often expressed with complicated formulas and not so familiar jargon by the so called gurus of investment. If things are expressed in simple language with practical examples that we can connect from our day to day lives, there is no reason why subjects related to financial matters should stay as dry subjects for ever. This books would hold a special place for India stock market investment related works.

Here I am talking about the ebook ‘The Science of Stock Market Investment - Practical Guide to Intelligent Investors’ by Chellamuthu Kuppusamy published with Amazon.com. (http://www.amazon.com/dp/B009XUI1X6) Sadly, this books is not yet available as a print version. It should either be read with a Kindle or by installing Kindle for PC software, which is free to download from amazon.com. Kindle is not very popular in India and hence I read it on my system through ‘Kindle for PC’.

If you are asking me to write in one sentence, I would say, The Science of Stock Market Investment makes a genuine attempt to simplify capital market investment. It busts the myth that only the so called experts are experts and others are novice. Chellamuthu Kuppusamy demonstrates that everything boils down to common sense. Commonsense is often misused, rather misunderstood, word. I understood that by reading this book.

The book does not have the secret formula to become rich overnight. Nor does it completely disregard share market like many people do by calling it a gambling. The author also categorically tells the market and market participants are rarely rational. By consciously developing a custom stock selection process based on an individual’s strengths and weaknesses and constantly enhancing the exposure, a common man sitting in a remote small town can outperform the market & sophisticated people giving expert opinion on business news channels.

As I mentioned about commonsense and other stuff, I don’t mean to say that this book is all about philosophy. The Science of Stock Market Investment giving a practical example about what the stocks are about, why they are issues and what are the roles of shareholders, promoters, executives, regulators, exchanges etc – all in simple terms. Then it talks about various formulas  stock selection approaches, validation methodologies, corporate governance, macroeconomic indicators etc.

The author has made an interesting analogy on Rahul Dravid and goes how simple the game of investing could turn out to be if we keenly observe the batting style of the legendary Karnataka batsman. A book becomes complete even if induces a slight change of thought in readers’ minds. I consider the chapter ‘Rahul Dravid school of investment’ as a corner stone that helped me make a paradigm shift in my approach towards stock market.

Buying a stock for a price lesser than its present value is the central theme of value investing. ‘The Science of Stock Market Investment - Practical Guide to Intelligent Investors’ is certainly a value buy, buy and hold for a long term !"

Perumal Karur
perumalkarur@gmail.com

Thanks to Perumal for sharing this. I request Sekhar's Page Fans to share your feedback or comments on this. If you have any reviews, comments or want to share your thoughts about other books please write to me at sekharc75@gmail.com  - Sekhar