BOOK REVIEW: Coffee Can Investing: The Low Risk Road to Stupendous Wealth
Author: Saurabh Mukherjea, Rakshit Ranjan, Pranab Uniyal
Coffee can investing is written by Saurabh Mukherjea, Rakshit Ranjan, Pranab Uniyal. I completed this book in almost eleven hours (not continuous). This is the book of stock market investing, investing in mutual fund and real estate etc. There are so many case studies written and a detailed back testing is available in for investor’s to learn and make their portfolio low risk and high rewarding.
This book can be read by any age group and any professional interested in investing. The language of the book is very easy with very less technical terminology. It has been seen in stock market or mutual fund industry that there are so many words are there which people fail to understand and fail to invest their money with maximum surety. People fail to invest their money as they fail to understand the fluctuations of market, they fail to have patience and they fail to invest their time in learning.
Through this book reader learn to save their money and invest in the products suitable for them as per their risk appetite. People will learn not to pay much brokerage or Commission to intermediaries. People will learn to manage asset allocation and to avoid over trading. This book also teaches us to construct our portfolio effectively and manage it sensibly to survive in hard time.
As every book have some merits and demerits. This book also has some…
The merits of the book…
Merit of coffee can portfolio is well known far its belief in investor’s prudence in long term.
Incorporates or in business CCP is helping to make every effort to make profits.
Short term losses are way less than long term profits long term profits can easily digest short term losses, resulting in overall positive gains.
Coffee can investing refers to buy and forget approach to invest in stocks which can produce profits consistently.
As per Indian stock market, invest in companies which have ROCE greater than 15% every year and revenue growth of more than 10% every year over the last 10 years.
Demerits of the book…
In this modern era, age of disruption, how can one left unattended his portfolio of stocks for 10 years!
As per of the coffee can investing there are very few companies available to invest and i.e. ITC, Lupin, HCL tech, Asian paints. These are only companies qualify in nifty 50.
Well managed equity mutual fund can easily outperform this portfolio even for a period of five years as case study suggest.
After reading the book I with my own thinking developed a way to construct a coffee can portfolio of stocks but change the stock in it every year if it is not able to fulfil the desired return.
The people who are disciplined in investing may achieve success with any approach they follow. But most of the results are failure. We may learn best concept with back testing which works on paper but when we apply these concepts in real market then it leads to failure with so many factors like emotion, lack of patience, fluctuating oil prices and crisis in foreign marketed.
Very nice book to read and buy
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