Ram Bhavnani has been considered by the media as one of the great Spanish investors of the last decades. Undoubtedly, its profitability figures up to the stage of the housing and credit bubble were worthy of that fame. However, investments have not fared so well after the bubble burst. In this article I will give you my opinion about his book "The secrets to make money in the stock market."
Technical sheet of The secrets to make money in the stock market
- Title: The secrets to making money in the stock market
- Autores: Ram Bhavnani
- Publisher: Libros Libres
- Año: 2.007
- Page: 254
Analysis and opinion of the book
First of all, I have to say that the title of the book is quite wrong. It could be called “The Story of a Speculator in the Spanish Banking Bubble”. Anyone looking for secrets to making money on the stock market will not find them, but rather the story of Ram Bhavnani and the way he made his fortune, which does not become secrets to making money on the stock market, but rather, as we will see. , quite the opposite.
Among the big mistakes I see in Bhavnani's investment style is the lack of diversification, the concentration of investments in bank stocks or recommendation of "stop loss" or invest with leverage through borrowed money. By the way, in this blog we have already talked about the risks of investing with borrowed money, which is worth remembering.
Some of you will think: "And if Bhavnani did well, why shouldn't we listen to him?" Well, the truth is that while the bubble lasted everything went well, but as Warren Buffett says:
"Only when the tide goes out do you know who was swimming naked."
For readers who wonder Benjamin Graham, sure that it would be much better.
Valuation of The secrets to make money on the stock
Secrets to making money on the stock market is not a book that, in principle, I would recommend to anyone.
- Score: 4
- Low level
- Recommended to: People interested in the experiences of an investor who made a fortune thanks to high-risk leverage and the Spanish credit bubble. I do not recommend it for those who want to learn to invest in the stock market.