Friday, November 16, 2012

Foreword for 'The Science of Stock Market Investment'

- Chellamuthu Kuppusamy

Mr.Nagappan is an eminent speaker cum writer when it comes to stock market investment.  His profile goes like : “Stock Broker, Investment Doktor, Writer, Author, Columnist, Director, Madras Stock Exchange Ltd and Chairman, MSE Institute of Capital Markets; Vice President-STOWA, Chairman - Expert Committee on Capital Markets, Hindustan Chamber. . . .”

I have known Mr.Nagappan for quite some time now and he gave me the opportunity to present a guest lecture in the regular Investor Awareness Program conducted at Madras Stock Exchange. Despite his tight schedule, he agreed to read the book ‘The Science of Stock Market Investment - Practical Guide to Intelligent Investors’ and write a foreword. My sincere thanks to the director of MSE.

Now over to him..


Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius — and a lot of courage to move in the opposite direction.
― E.F. Schumacher, British Economist & Statistician.
Fascinating world of Stock Market is normally considered as exciting but, a complex animal. CK is more qualified to write this book than any other “Intelligent Expert”, as he always has the knack of looking at things from a learner’s perspective, than from a top down approach.

Chellamuthu Kuppusamy - somebody who blogs on investments: this is how I know about him in the beginning/earlier days. But when I started reading some of them, I got glued on to it. Not even in my dreams I thought he is from IT Industry. Only when I invited him for the monthly meeting/Talk at the Madras Stock Exchange, I learnt about it. I was surprised when I read out his profile to the audience while introducing him and wondered what made a technology geek to take interest in stock markets. But, he kept the audience spell bound throughout the session.

My disbelief is not without reason. IT in boom in India is leaving a huge disposable surplus at the hands of the younger generation; it is extremely important that they should know how to save prudently and invest wisely for their own betterment and for the betterment of the future India. But, talk to young people from the IT Industry – most of them below the age of thirty five - on investment planning or financial planning and you will realise that they immediately go to sleep mode. Still worse is, when you start talking to them on stock markets – they go to a total switch-off mode. I won’t blame them while the reason being that not many books are available on this subject, which talks in their language.

After reading “The Science of Stock Market Investing”, I sincerely believe that CK must have realised it and decided to write this book on stock market investing, from the learners’ perspective.

Leonardo da Vinci said “Simplicity is the ultimate sophistication.” This book is written in an easy to understand format, with numerous illustrated examples in current context, plenty of helpful hints and useful tips you will find along the way, which is bound to make the learning process more fun.

The best thing about this book is that it is one of the rare/few books written in the Indian context, with Indian audience & Indian markets in mind. Practical and more recent examples from Indian markets are used to explain the pitfalls while investing. The handholding is done by fictional characters like Mr Money & Mr Market.

Apart from the customary learning of the basics of fundamental analysis and technical analysis, including EPS, PE Ratio, Face Value & Book Value, etc., the concepts and techniques explained in this book, using sports and science as learning tools, are captivating. It tells you what you can learn from Rahul Dravid and his style of batting. It also tells you what you can learn about stock market investing from Newton and his laws! Have you ever thought that you can learn about stock markets from a scientist and a cricketer?

Timing of the book is great! The book is more relevant today, since the launch of second phase of reforms by Government of India. Following the latest set of reforms & policy initiatives, FIIs faith in Indian markets have gone up and have started pouring in money into Indian stocks. It is pertinent that our younger generation should also actively participate in this wealth creation, by learning the ropes of stock market investing.

In the long run, Stock markets are the best way to earn the extra bucks, beating the high inflation. With no job guarantee and social security, it is essential that the gen-y starts saving & invest it wisely in investments which will fetch them better returns.

On personal front, for a person like me who has co-authored 6 books on personal finance & investments and written hundreds of articles on this subject, reading this book was a pleasure and in fact, a relearning process on many counts.

The books are normally written for day traders, jobbers, brokers, analysts, et al, with an overload of information, which can be overwhelming for a discerning learner. In contrast, this book is written by a passionate learner cum expert, with both the learner and expert in mind.
Arming yourself with this information can help you take decisions that will build a strong foundation for your peaceful future/financial freedom. Endless possibilities are open due to technological advancement; You can now trade online, sitting at comfort of your home. Roll up your sleeves, get ready to dive in and get started.


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