Ask Anand Srinivasan



A list of common questions that come to me and my answer to those questions
What stocks to buy?

One should learn to analyse stocks, not look for recommendations. One must learn how to catch a fish before eating it.

Can you suggest a mutual fund?

Buy a Nifty index fund along with it a Nifty next fund.

Can I take a personal loan to invest?

No. Never borrow to invest. Leverage will lead to your bankruptcy.

Should I buy a house on EMI?

No, if after putting up 20% of the total cost, and the EMI is still not equal to the rent do not
buy a house.

Should I buy a sovereign gold bond?

If you can afford to wait for 5 years without needing money or gold to pledge you can buy an
SGB. Otherwise, it is better to avoid purchasing an SGB and parking your funds into it. The
primary use of gold is that it can be pledged at short notice for liquidity.

What books do I read to learn about investing?

Learn to earn and beating the street by Peter Lynch, Alchemy of money and Ordinary stocks
and extraordinary profits by Anand Srinivasan.

Which investors and economists should I follow?

Warren Buffet, Charlie Munger, Mohnish Pabrai, Guy Spier, George Soros, Robert Shiller and
Raghuram Rajan.

Should I buy gold?

Yes, one should have up to 400 grams of physical gold for emergency use. Nothing helps in
times of trouble quite as much as gold.

Should I close loans or invest?

 All personal debt must be closed before making any big investments. The only loan you can
continue is an existing home loan.

Is LIC a good investment?

LIC is a poor investment. When you mix investment with insurance you neither get proper
insurance cover nor investment results.