Joys of Compounding

Gautam Baid, CFA, is the fund manager and managing partner at Stellar Wealth Partners India Fund. He is also the founder of Stellar Wealth Partners Private Limited, a firm that offers stock ideas for investors in the Indian stock market. In 2018 and 2019, he was profiled in Morningstar’s Learn from the Masters series.

• Foreword1. Introduction: The Best Investment You Can Make Is an Investment in YourselfPart I: Achieving Worldly Wisdom2. Becoming a Learning Machine3. Obtaining Worldly Wisdom Through a Latticework of Mental Models4. Harnessing the Power of Passion and Focus Through Deliberate PracticePart II: Building Strong Character5. The Importance of Choosing the Right Role Models, Teachers, and Associates in Life6. Humility Is the Gateway to Attaining Wisdom7. The Virtues of Philanthropy and Good Karma8. Simplicity Is the Ultimate Sophistication9. Achieving Financial Independence10. Living Life According to the Inner Scorecard11. The Key to Success in Life Is Delayed GratificationPart III: Common Stock Investing12. Building Earning Power Through a Business Ownership Mind-Set13. Investing Between the Lines14. The Significant Role of Checklists in Decision-Making15. Journaling Is a Powerful Tool for Self-Reflection16. Never Underestimate the Power of Incentives17. Always Think About the Math, but Avoid Physics Envy18. Intelligent Investing Is All About Understanding Intrinsic Value19. The Three Most Important Words in Investing20. Investing in Commodity and Cyclical Stocks Is All About the Capital Cycle21. Within Special Situations, Carefully Study SpinoffsPart IV: Portfolio Management22. The Holy Grail of Long-Term Value Investing23. The Market Is Efficient Most, but Not All, of the Time24. The Dynamic Art of Portfolio Management and Individual Position Sizing25. To Finish First, You Must First FinishPart V: Decision-Making26. Read More History and Fewer Forecasts27. Updating Our Beliefs in Light of New Evidence28. Life Is a Series of Opportunity Costs29. Pattern Recognition30. Acknowledging the Role of Luck, Chance, Serendipity, and Randomness31. The Education of a Value InvestorConclusion: Understanding the True Essence of CompoundingAppendix AAppendix BAcknowledgmentsNotesBibliographyIndex

Over the years, as I’ve realized the importance of learning through wisdom instead of suffering, my favorite gift has been to give a person a great book. This book is going to go to the top of that list.