Value Investing and You

Some important lessons you need in life are hidden in a book. You don't know which book it is. So, read as many books as possible. Chances are more you will find your lessons. I did not buy into this quote until I read, The Intelligent Investor by Benjamin Graham.

I've read this book twice. I've never read any other book twice, before. Then I bought, Security Analysis by Benjamin Graham and David L. Dodd. I'm currently reading it for the second time. It's not just because I fell in love with the book. It's for the fear of having missed something golden.

Value Investing, as Seth A. Klarman observed, "When you first learn of the value approach, it either resonates with you or it doesn't. Either you are able to remain disciplined and patient, or you aren't". As Warren Buffett said, "It is extraordinary to me that the idea of buying dollar bills for 40 cents takes immediately with people or it doesn't take at all. It's like an inoculation. If it doesn't grab a person right away, I find you can talk to him for years and show him records, and it doesn't make any difference".

There is a sea of articles about Value Investing on the internet. There is no point in discussing it here, again.

What it does to you?

Once you've grasped the essence of value investing, I'll tell you, what it does to you:

• You will start estimating the value of everything, literally.
• You will buy everything you need and nothing you want.
• When you go to the super market, you will find it very difficult to control laughing at people with stacked up baskets.
• Price will be the last thing you will ever look for.
• Your expenditure will take a nose dive.
• You won't mind listening to the promises made by those investment advisors.
• You will revise your "list".
• You will prefer reading the editorial to the sensational headlines.
• You will not rush to watch Endhiran.
• You know the difference between cheap and undervalued.
• You understand, time spent on people is time spent. All other time is wasted.
• You won't track the SENSEX.
• You will stay away from the stock market as much as you can.

In a nutshell, you will not be the same again. Can you imagine yourself staying away from your favourite junk food? Trust me. There is no point in living like this. You'd rather not know anything about value investing and Graham and live as if they never existed.