Index Investing: A Low Cost, Low Risk Strategy to Investment Success | Book Review

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I haven’t read such an honest book about the Dalal Street so far. The writer has been very honest with his views and hasn’t shied away while talking about the insider’s topic like ‘YOUR BROKER IS NOT YOUR BUDDY’ and The Agent and The Principle or how an Investment newsletter can be misleading.

The book is broadly divided into 4 parts with a total of 20 chapters. It covers The Theory, Psychology, the Business of Investing and the Solutions.

The book has helped me to look beyond the investing myth (which I wasn’t even considering) and has shaped my approach towards understanding the stock market as well as mutual funds by being more educated and proactive. It is like a cumbursive read about the equity and how to be prepared before we start investing. It explains how human behavior largely and majorly affects the fluctuations. It basically helps you understand the psychological part which is much important but often neglected.

I appreciate the author’s dedication and the research done to bring all these important chapters together in such a simplified manner that when a beginner (a person who is only recently introduced to equities) will find all possible explanations here. I, personally, learnt a great deal about Mutual Fund Mechanisms and Equity Investment here.

While I was reading the book, what stuck me was that every time I had a question reading a particular paragraph, the following paragraph would answer the doubt. It felt like the book was talking to me with supportive real and actual examples from history as well as the recent past.

Few of my favorite chapters were about The Magic of Compounding, and Intrinsic Value. The chapters are supported with examples which made my learning much easier than just going through theories.

To conclude, I did not feel like putting the it down because the book, honestly, has a lot to share. Highly recommended for new investors or the one’s who are wanting to learn and understand how the market works, the thought process and the fundamentals as well as technical parts of the same.

“Index funds operate with minimal expenses and with no advisory fees, with tiny portfolio turnover, and with high tax efficiency.” —John Bogle, Former Chairman, Vanguard Group