READERS REFUGE
Reading books has always been an experience similar to opening an unknown door, just to find yourself in a better and an elevated position. From possessing bibliophobia to being a book worm, I can truly say that this habit has given me an edge over my previous self. Out of all the habits that I follow, I believe that reading has been a fundamental one—a habit that has boosted my confidence in every aspect of my life. Obviously, the lessons have helped me become a better professional, but just the ability to hold a conversation with anyone on any random topic has been possible because of this habit. Someone truly said that when you love someone, you truly forget your imaginary fears and try to overcome them for them. For me, reading a book was one such fear that I overcame because of one person I truly love, Mr. Waren Buffett.
In the past 4 years, I have had the privilege of reading some of the best books out there, covering various disciplines and authors all across the world. Some of them have made a special place in my heart, and I would love to share a few of them, hoping they could have the same impact or even better on your life. So, grab a kindle or open your amazon accounts and get ready to fill your library with some great literature out there.
1. Thinking slow and fast by Daniel Kahneman:
This book is about how two systems—intuition and slow thinking—shape our judgment and how we can effectively tap into both. Using the principles of behavioral economics, Kahneman walks us through how to think and avoid mistakes in situations where the stakes are really high. If you are prone to making rash decisions that you sometimes regret or feel too burned out to spend a lot of time weighing out the pros and cons of certain choices, then the book is definitely worth checking out.
Kahneman says that our system 1 is biased, whereas our system 2 is doubting and questioning, and we need both to shape our beliefs and values. When I was making a decision, I found that I was searching for evidence that supported my choice rather than finding counterexamples. I made decisions so quickly using System 1 that I didn't start questioning those decisions until I realized I didn't make the right choice. We make a decision in a hurry, later finding ourselves looking for confirmation of our decisions, just to make a fool of ourselves. It is a great time to explore and understand our thinking patterns, and this book will definitely help a lot.
2. The Psychology of Money by Morgan Housel:
Who doesn't know about this book? Everyone out there has at least heard about it once. For me, when I am reading a book, I might end up liking a particular chapter and not the entire book. The psychology of money is one such book. Out of all the things that the author has pointed out, the chapter on the importance of luck stood out for me. We don't really think through the importance of luck. Being at the right location, at the right time, with the right people, all these things might be a coincident but if they keep repeating, it wouldn't be a coincident anymore. Betting admission in a school that had the access to a computer was one of the rarest things about the 70's. Lakeside School was the only private school in the US that had a computer and none other than Mr. Bill Gates took admission there.
From the computer lab of Lakeside School, Bill started his journey alongside Paul Allen and gave the world one of the most valuable companies with the market cap crossing a trillion dollar. He himself has talked about this in many of his interviews. Because of his early exposure to computers, Bill was able to build Microsoft. If he would have taken admission in any other schools, we might not have heard about a company called Microsoft. Netflix did a documentary on Bill in which he shared a story about his best friend from high school.
3. Power Vs Force by David Hawkings:
I doubt that I can convey what Mr. Hawkings has talked about. This book has been an eye opener for me. This isn't about economics or the markets. Rather, it is about consciousness and their levels. It is another must have book. It is a great book for anyone to know more about their own consciousness and take better decisions. As the name suggests, the decisions that we take are either through power or through force. By the end of this book, you will have a clarity about your consciousness while taking decisions. I have miserably failed to transfer the excitement about this book but trust me, you won't regret reading this psychological bible.
4. Joys of Compounding by Gautam Baid:
One of the most important lessons that has uses in every discipline of life is compounding. Einstein once said that compounding is the 8th wonder of the world. He who understands it, earns it, and he who doesn't, pay it. Gautam Baid not only sheds light on the superiority of the value investing approach but also provides an intellectual toolkit for achieving an in-depth understanding of the world around us, including ourselves. He shares a holistic approach to investing that combines self-improvement, knowledge building, and investing wisdom.
Different types of compounding exist in life. Understanding the exponential function that is at the heart of compound is absolutely essential. However, it is equally important to acknowledge that similar functions exist in many other areas of life. If you compound positive thoughts, good health, good habits, knowledge, and goodwill, you will have enormous benefits in life that will go well beyond money. Additionally, the other effect of compounding in these areas can also lead to compounding wealth.
Value investing, if viewed in this way, is more than an investing approach. It constitutes a lifestyle, a way of living that puts the odds in your favor and is also worth pursuing for non-monetary reasons. Compound knowledge building, just like compound interest, grows exponentially over time. It will allow you to draw on your own and others’ instincts, judgments, and experiences. For example, reading just 25 pages per day equates to 9,000 pages per year, which would enable one to read Robert Caro’s 1,336-page book "The Power Broker" nearly seven times in one year. Time, the currency of life, is a non-renewable resource that becomes increasingly scarce for everyone as each day passes.
5. I came upon a lighthouse by Shantanu Naidu:
Those who have been reading my blogs for a long time know how much Mr. Tata means to me. He is like a father figure to me. I read somewhere around 55–60 books last year, and the one that stood out was this one. Shantanu Naidu, who is the author as well as personal secretary of Mr. Ratan Tata, penned down his entire journey, from being called by Mr. Tata in his office until the time he got appointed as his secretary. Mr. Tata is a story that every person should read about, irrespective of their age, gender, profession, religion, or country. In every aspect, whether it's about being a businessman, a philanthropist, a family man, a friend, an alpha male, or even a good citizen, this man has set the standards so high that anyone who absorbs at least 1 percent of what he has taught will have a successful life.
Shantanu has written about Mr. Ratan Tata in the most honest and wonderful manner. His words and incidents give you a sneak peak in the life of the octogenarian philanthropist. You’ll ask, what’s so different about it? Well, the retelling offers us the friendship of an engineer in his twenties and an octogenarian Industrialist. A side of Mr. Tata that a lot of us may have not witnessed as much is what’s explored in this memoir. Shantanu, a debut author has really done a commendable job with the writing. The warmth and comfort provided by the incidents is same as the warmth provide by the writing. It’s been written in a really absorbing manner; almost doesn’t make you want to put the book down. There are so many things that I loved in this book particularly the goofy and friendly side of Mr. Tata.
6. Richer, Wiser, Happier by William Green:
Imagine yourself in a room filled with legendary investors, ready to give you an insight into their personal and professional lives. They are out there sharing every possible lesson that markets and life have taught them. Sounds fascinating. Doesn't it? Well, I know this isn't physically possible because a few of them are doing what they do in Hell. But the only thing that comes close to living this experience is this 280-page book.
William Green is a well-known financial journalist and has access to many of the world's best investors. He interviews them and summarizes their philosophies not just on investing but on how to be happier in life, even when you have made large amounts of money. What strikes me about the book is that despite being worth billions of dollars, all the investors do not live extravagant lifestyles, are not famous (many names you will have never heard of) and are very prudent and frugal with their money. All of them have slightly different, but similar, approaches to investing.
The book is overflowing with gems of wisdom and helpful concepts for becoming a better investor, many of them so simple anybody can understand them, but also so brilliant that they have built multi million (billion) dollar fortunes over a few decades. I would highly recommend the book to everyone.
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