Want to learn how to run money and beat the market consistently? Then Investing Against The Tide is definitely the book for you. It is the synthesis of Anthony Bolton’s almost three decades of running money at Fidelity and delivering a market beating performance.
All of us like to imagine ourselves as value buyers who buy low and sell high. Those who have tried this know how difficult it really is. Anthony Bolton in a typical British tongue in cheek manner provides the invaluable lessons acquired over 25 years of using the contrarian approach successfully. The book is a must read for those who are in portfolio management. But even to an amateur, it provides insights into making profitable investments on our own. Bolton emphasises the importance of developing an investment thesis for every stock we want to own. In nutshell, it means being able to explain in a few sentences why we own a particular share in such a manner that even a kid can understand.
He provides valuable lessons in how to construct a portfolio. In doing so he stresses the importance of the quality of business franchise and management. The advices I found particularly worth paying attention to are –
- Balance Sheet is vital. You will always lose money on a company with a weak balance sheet when the business environment changes. (Remember DLF, Unitech, Suzlon, Kingfisher ? Oh …. The list goes on and on….)
- Pay attention to sentiments. You can find wonderful stocks in unloved and under owned sectors.
- Minimise your “losers”. It will automatically turn your portfolio from good to great.
- Cash is real. Profit is an opinion. When in doubt about how a company is doing, follow the cash.
I think this book must be in your collection if you are serious about learning the art of investing.
Thank you for reading. I appreciate your time.
The book is available cheapest in India at –