5 Rules of Invesment by Parag Parikh

He acquired his Master's Degree in Commerce and  Economics from the University of Bombay, India. He always wanted to do something beyond the ordinary. 

Born - 12 February 1954 (Mumbai).

Died- 3 May 2015(Nebraska, U.S).

Education from- Harvard Business School.

Famous Book- 

1. Value Investing and Behavioral finance.
2. Stocks to Riches: Insights on Investment Behavior.

Five Investment Rules of Parag Parikh-

• "Don't take your Investment decisions emotionally" - 

Humans are emotional fools. I don’t suggest to be condescending, however, that is the truth. We, humans, enable our thoughts to run madly pretty often and that infrequently ever ends with us in a top place. 

Whenever we are capable to hold our thoughts in check, we are able to take higher decisions. These are decisions about our life, our work, and our money. When our investment is concerned, putting off emotions can result in higher decisions. 

• "Do not follow the Fancy stocks" -

Do not follow the trend and crazy about some fancy stocks. Its don't take it otherwise.  It means if every one wanna to buy either in their original value or in more than their value than be careful before buy.

• "Show the courage at right time" -

Be fearful when others are greedy, and be greedy when others are fearful- "Warren Buffett".
Through this statement, maybe a prudent man will be understood easily.

• "Don't follow a herd mentality" -

Herd behavior is the conduct of men and women in a team performing at the same time without centralized direction. So do not follow hear mentality without thinking twice. 

• "Understand the concept of value in use and concept of value in exchange" -

In this, the investor should understand the actual use of the things for which investor going to invest their hard earned money.



Written by- Rahul Pareek
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