Narach Investment

WHAT TO INVEST?


The investor would mainly invest his time, effort and financial resources (including savings and reserves) in this endeavor of investment management.

As individuals, what do we have that we can invest? Well, at the individual level, we only have time which we can invest. The rest, whether it be a job, an expertise, a hobby, money, etc. are only the mediums through which we invest or employ or deploy our time.

Let's consider a person working in a large corporation. He is given a job description and further a job specification. He knows exactly what the job requires and further what is expected of him. While doing his job, he is investing his time in thought, analysis and action to accomplish the job at hand. For doing this, which is also called contribution; the corporation compensates him for his valuable time through the payment of pay and perks to him.

This person has invested his time in doing a job of work in a corporation, and his return on investment is the pay, perks and other facilities the corporation gives him every month. Similarly, the person wants a higher rate of return on his financial investments (may they be in equity, debt, bonds, deposits, real estate, art objects, rare stamps and coins). Well, for starters he would have to invest his time in thought, analysis and action to accomplish it.

Initially, it would require the person to invest his time in the study of the subject matters of investment analysis and portfolio management or "Investment Management". There are probably thousands of books written on the subject. However, we would suggest a select few to put you on the correct path.

Our recommended books would include, "Security Analysis" by Graham & Dodd, "The Intelligent Investor" by Benjamin Graham, Options Futures & Other Derivatives by John Hull. These books are considered by most to be the bibles on the subject. Other books of relevance would be "Stock Market Logic" by Norman Fosback, "Market Momentum" by Martin Pring and "The Way to Trade" By John Piper. You may also consider and find books like "Stock Market Trading Rules" by William Eng, "One up on Wall Street" by Peter Lynch and "Stock Market Probability" by Joseph Murphy of some interest. There are many other books we have read, but the present list should suffice to put you well on the path to learn this subject and understand its nuances.

Although you have found this list of books on our website on the internet, we would strongly recommend that you buy these books from a bookstore near your location and vicinity. This is mostly for the reason that you may find occasion to revisit a chapter or part of these books to refresh or better understand the concept underlying the investment action you may be planning to implement. For the more internet savvy, you may be able to find these books in eBook form at websites like Amazon. Although, the choice of medium would be yours, we would prefer that you buy these books from a bookstore in the sequence and progression listed above. To buy them all together would be overloading yourself and you may start avoiding the subject matter and prefer to indulge the daily fluctuation of the stock market and become prone to errors in your investment decision making.

It would be fair to mention here that, it would be the enterprising who would be able to create the time in their otherwise busy lives to study this subject matter in some depth and detail. This would indeed make their subsequent investment experience a better and more rewarding one.