Book Review: The Art and Science of Real Wealth by Bollachettira Dhyan Appachu

by - 7/14/2020

Title: The Art and Science of Real Wealth
Author: Bollachettira Dhyan Appachu
Genre: Finance, Non fiction
Pages: 103

I have already been impressed by Bollachettira Dhyan Appachu when I read his Magnum Opus 'Arya Dharma
So when he came out with his new book on wealth, I knew I had to devour it.

Firstly he is such an inspiration that he made so much money at the age of 30 which most of us would never make in a lifetime. But not without blunders. That is why he is such an ideal person to advise about making moolah and not committing the same mistakes which he did. The book is very thorough and I learned a huge deal of things. I would like to list some takeaways here. I am a lay person with a medical background and have no knowledge of finance so I am enumerating all the things that I would like to remember for future.

His biggest inspiration had been Harshad Mehta, yes the Mega scamster who inspired a huge crowd to dive into the stock market and invest. Also I learnt about Jesse Livemore,  the greatest speculator in modern history. 
By the age of 15, he earned $1000 ($28000, Rs 18,00,000 in 2017 value). 
He made $100,000,000 ($1.4 billion, Rs 9100 crores in 2017 value) in the crash of 1929. 

His favourite book on speculation is Reminiscences of a Stock Operator which is about Jesse Livermore. Here are the key points:

1.Cut your losses. 
2. Let your winners run. 
3. Nothing new ever occurs in the business of speculating or investing in securities and commodities. 
4. Money cannot consistently be made trading every day or every week during the year. 
5. Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion. 
6. Markets are never wrong – opinions often are. 
7. The real money made in speculating has been in commitments showing in profit right from the start. 
8. As long as a stock is acting right, and the market is right, do not be in a hurry to take profits. 
9. One should never permit speculative ventures to run into 
10. The money lost by speculation alone is small compared with the 
gigantic sums lost by so-called investors who have let their 
investments ride. 
11. Never buy a stock because it has had a big decline from its previous high. 
12. Never sell a stock because it seems high-priced. 
13. I become a buyer as soon as a stock makes a new high on its movement after having had a normal reaction. 

14. Never average losses
15. The human side of every person is the greatest enemy of the average investor or speculator. 
16. Wishful thinking must be banished. 
17. Big movements take time to develop. 
18. It is not good to be too curious about all the reasons behind price movements. 
19. It is much easier to watch a few than many. 
20. If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole. 
21. The leaders of today may not be the leaders of two years from now. 
22. Do not become completely bearish or bullish on the whole market because one stock in some particular group has plainly reversed its course from the general trend. 
23. Few people ever make money on tips. Beware of inside information. If there was easy money lying around, no one would be forcing it into your pocket.

Well I could go on and on but would like to conclude with his golden words: Never put all your eggs in one basket.
Never go for “All or Nothing”, because most times you will end up with nothing. 
This does not just apply to investing, but to any aspect of your life.

If you are in stock market, this is a must read. If you are a layman like me, then you definitely should read this book to enlighten yourself and for future investments.

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  1. Wow! This book seems very interesting. Your review is written really well. I really enjoyed it!

  2. I liked the points u have mentioned, it makes so much sense.
    Also, my hubby is in finance, so he will like to read this book.

  3. Looks like an awesome read. I am currently reading a lot of books on profits, loses and money related, maybe I should pick this up as my next read.

  4. Not a topic I know anything about but ny brother is venturing into stocks. Must ask him to look into this. Well reviewed must say.

  5. I'm not into reading but I will surely recommend this one to my brother who is fond of share market.

  6. Liked the fact that the book review was in such a detailed manner. Definitely helpful for all those book lovers out there :)

  7. Thanks for sharing detailed information about the book. I will definitely going to read this book for sure.

  8. The books seems like a good read. Thanks for sharing your view point.

  9. Great selection to consider in reading. Have a great weekend.