Coffee Can Investing: The Low-Risk Road: The Low Risk Road to Stupendous Wealth

Great Book For Beginners who is thinking for long term investing.

With the current stock market freefall going on, this book was a balm to edgy nerves. It offers insights and detailed explanation to strategies for average investors like us on navigating through stock markets. It provides a pathway to investing without taking unnecessary risks and avoiding most common pitfalls. The language is simple,easy to understand and most importantly the strategy is easy to follow. It has ample statistical evidences to support the theory,but they don’t overwhelm the reader.Highly recommended for anyone who is into investing in Indian stock markets.

Worth it

Good Product and Nice Material

For me this book in OK for one time read. I do not rate it very high or very low. Below in my review:Pros:1) Book illustrates mindset for long term investment.2) Emphasises actual profit realization & being cautious about cost part.3) Brief on mutual funds is goodCons:1) Except for first few chapters, later part doesn't give much value add if you are looking from Equity investment point of view.2) Writer attempted to cater variety of audiences briefly that actually lost relevance at many places.3) If you are looking for equity investment then entire theme is only 2 ratios & long term.4) Method only emphasises on very long term with almost no look at current valuation. Writer & his agency might have done thorough research but it can also mean buyer may buy highly overpriced stock which may go into correction or consolidation for long time.Note-1) Writer has given definition of few ratios but overall this book requires reader to have basic familiarity of stock market & terminology. Not for a person who doesn't know anything about stock market.2) Writer at many places has given reference of his own firm in statistics & analysis. Some may take it as an advertisement but I think that's justifiable as source of information is required for any reader.

This book gives good idea for retail investors on how to pick good stocks, importance of staying invested for longer period. Good detailed examples are added to explain the topic.

Interesting read. I have partially applied some of the advice. Especially around investing in ETFs, debt funds and mutual funds. Too early to judge the results. However the financial tool it talks about is no longer available and the original parent company seems to have distanced itself from the book. So I would infer that any investment advice it gives should be acted upon with caution. More so, the coffee can portfolios from 2014 seem to have underperformed compared to what the book predicted. Though the book says that the portfolio is immune to downturns it’s clear that Covid has changed some of the equations.

I stumbled upon Saurabh Mukherjea when a friend of mine pointed me to him recently. My friend has done fairly well investing in the market while I, being a novice, just recently jumped in with the dreams of doubling my wealth post the stock market crash that Covid-19 triggered when the country went into lockdown on 22 March 2020.For the past 15 years, I have stayed clear of speculative investments, choosing to simply invest in my business, a few structured NCD investments and Fixed Deposits. I heeded Warren Buffett and Charlie Mungers advice and stayed within my circle of competence, which did not involve investing in stocks. Risk as they said "was not knowing what you are doing", and when it came to stocks nor did I have the time to do fundamental analysis not did I have the temperament or skills. Despite knowing my limitations, my emotions got the better of my rationality, and instead of making money I lost money by doing everything that this book advises one not to do. The gambling like pull of trading is so strong that it turns ones most rational senses to mush and then makes one make even more mistakes in an effort to get even. It's been a valuable lesson that I wish had remained vicarious. There is a section in the book which talks about how loss hurts 2.5 times more than a gain. After having experienced losing, I can tell you that this is true.Reading Coffee Can Investing will give you an insight into the minds of the founders of Marcellus and their fund Consistent Compounders (CCP), the top performing PMS Fund in India. Over the past few months I have become a huge fan of their philosophy, the team and the rigor that they follow in order to reduce risk while providing above market returns. The end of the book shows the evolution of their filtered approach to deciding what to invest in on a rolling basis. The book also drives home the importance of financial planning and provides an excel based financial planning model. Just this tool is worth much more than the price of the book.The reason I say that everyone should read this book is because everyone wants to grow their money to achieve security, stability and their ambitions. This book will give you a roadmap on how to go about doing just that.