Coffee Can Investing By Saurabh Mukherjea

Description

Saurabh Mukherjea’s book Coffee Can Investing: The Low Risk Road to Stupendous money is one of the most well-known and respected books for Indian investors who want to develop money over time without being caught up in the craziness of daily market fluctuations. This book doesn’t promise instant riches or easy ways to make money. Instead, it gives a clear, disciplined way to invest in stocks that rewards patience, research, and keeping your emotions in check.

The main idea of Coffee Can Investing is simple but beautiful. This strategy is based on an old American habit of putting valuable things in a coffee can and forgetting about them for years. It says that investors should do the same with their portfolios: buy a carefully chosen group of great companies and hold them for at least 10 years with little or no change. The point is that constantly making changes, trying to time the market, and following “hot tips” are not only stressful, but they also hurt long-term results.

Mukherjea, a well-known Indian fund manager and the founder of Marcellus Investment Managers, uses a lot of statistics, case studies, and his own years of expertise to explain this theory. The book starts by talking about how most investors don’t do as well as the market as a whole, not because they aren’t smart, but because they don’t stick to their plans. Trading a lot costs money and taxes, but more significantly, it makes you make decisions based on your feelings selling in a panic when the market goes down and pursuing fads when it goes up.

To fight this, Mukherjea gives his readers a research-based methodology for locating real Coffee Can enterprises. These businesses have seen their sales grow steadily for at least ten years.

High and long-lasting return on capital employed (ROCE).

A lot of free cash flow coming in.

Corporate governance that is clean and good for shareholders.

Investors can take advantage of the potential of compounding profits without having to worry about timing the market by buying and holding these kinds of companies. Mukherjea doesn’t only talk about theory; he gives specific instances from India’s own stock market. Asian Paints, HDFC Bank, and Marico are some of the companies that are looked at in depth to highlight how their steady growth, efficient use of capital, and moral management led to amazing returns for shareholders over the years.

Behavioral discipline is another important element in the book. Mukherjea says that the main problem with investing is frequently not not knowing enough, but not having the right attitude. Markets are always changing, but good companies can do well no matter what. The hardest thing for investors to do is to not act out of fear when the market

goes down or out of greed when it goes up. To do Coffee Can Investing, you have to be able to ignore noise and stick on through corrections, confident that the underlying businesses will be strong in the long run.

Mukherjea also talks about common myths, such the idea that investing in firms that are growing quickly is too hazardous or that you have to always follow the market to be successful. He shows that a carefully chosen portfolio of good companies gives you both higher returns and less stress over time by using statistics and evidence from the Indian market over the course of several years.

Coffee Can Investing is not just for people who work in finance; it is written in simple, easy-to-understand language. It’s made for any Indian who wants to build wealth in a smart and long-lasting way, without having to become a full-time trader or speculator.

In the end, this book asks people to be reasonable, patient, and believe that good enterprises can make money over time. Coffee Can Investing is a straightforward, relaxing, and very effective option for Indian investors who are tired of all the noise in the market or have lost money on risky bets.

About the Author

Saurabh Mukherjea is the founder and Chief Investment Officer of Marcellus Investment Managers. An acclaimed fund manager and market strategist, Mukherjea is known for his rigorous, research-based approach to Indian equities. He has authored several influential books, including The Unusual Billionaires and Diamonds in the Dust, and is widely respected for his focus on corporate governance, capital efficiency, and long-term wealth creation.

Product Details

• Title: Coffee Can Investing: The Low Risk Road to Stupendous Wealth
• Author: Saurabh Mukherjea
• ISBN-13: 9789353576704
• Publisher: Penguin Random House India
• Published: 2018
• Pages: 256
• Binding: Paperpack