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Experience without theory or vice versa investing in it? What did Nikhil Kamath choose?

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However, if one has to choose theory without experience or experience without theory, it is a very difficult choice. Both have their own place in the investment world.

Without theory, one may not be able to understand the complex web of concepts involved in investing. However, zerodha The co-founder said that he would always prefer the experience of theory to the experience without the theory.

Nikhil Kamath on Twitter recommended a book that explains how the world’s smartest people theorized stock investing and lost it all.

In the book “When Genius Fails: The Rise and Fall of Long-Term Capital Management,” author Roger Lowenstein captures the gripping roller-coaster ride of long-term capital management.

Based on confidential internal memos and interviews with dozens of key players, Lowenstein explains not only how the fund created and lost its money, but also the personalities of the long-term partners, the arrogance of their mathematical certainties and the wall. Street culture. contributed to both their rise and fall.

When it was founded in 1993, Long-Term was viewed as the most influential hedge fund in history. But four years later, when the firm dazzled Wall Street as a $100 billion-earning juggler, it suddenly suffered devastating losses that threatened not only the biggest banks on Wall Street but the stability of the financial system. also put him in danger.

In his new Afterword, Lowenstein shows that the implications of long-term capital management should not be viewed as a one-time play, but as a template for market downturns in an age of volatility – and a Wall Street and government alike were tragically ignored as a wake-up call.

Book on Amazon. available at the cost of 450.

Nikhil Kamath says that one should research about the product or company and completely ignore the external noise of people, marketing, branding and advertising etc.

Kamath said it’s a really easy read with a story-like format that doesn’t involve any complicated equations.

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Usama Younus

Usama Younus is the owner and super admin of the site he's is an expert in news editing, tech and entertainment magazine management, and articles editing E.T.C.

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