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Coffee Can Investing: The Low Risk Road to Stupendous Wealth
Most people invest in the usual assets: real estate, gold, mutual funds, fixed deposits, and stock markets. It's always the same four or five instruments. All they end up making is a measly 8 to 12 percent per annum. Those who are exceptionally unfortunate get stuck in the middle of a crash and end up losing a lot of money. What if there was another way? What if you could make not 10 not 15 but 20 percent compound annual growth rate (CAGR) on your investments? What if there was a way to grow your money four to five times whilst taking half the risk compared to the overall market? Bestselling author of Gurus of Chaos and The Unusual Billionaires, Saurabh Mukherjea puts his money where his mouth is. Saurabh follows the Coffee Can approach to high-quality, low-risk investing. His firm, Ambit Capital, is one the largest wealth managers in India which invests with this approach and delivers stupendous returns. In Coffee Can Investing, Saurabh will show you how to go about low-risk investments that generate great returns.
288 pages, Hardcover
Published February 1, 2018
About the author
Saurabh Mukherjea
9 books157 followersSaurabh Mukherjea is founder and chief investment officer of Marcellus Investment Managers. He is the former CEO of Ambit Capital and played a key role in Ambit’s rise as a broker and a wealth manager. When Mukherjea left Ambit in June 2018, assets under advisory were $800mn. Prior to Ambit, Saurabh was co-founder of Clear Capital, a London-based small-cap equity research firm that was created in 2003 and sold in 2008. He is a CFA charterholder with a BS in economics (with First Class Honours) and an MS in economics (with distinction in macroeconomics and microeconomics) from the London School of Economics.
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Displaying 1 - 30 of 289 reviews
April 8, 2018
Book starts by introducing two individuals who are inherently stupid and have ridiculous expectations. One of dude wants to change car every three years! I mean who does that? Average Indian doesn't change their underwear in three years.
Anyways... The book does its best to scare you away from investing in Gold and real estate. Then they introduce you to traits like patience and preserverence. They shamelessly plug their parent company every where.
Finally the financial advisor conviniently arrives as they are 10 years away from their doom and saves the day with coffee can portfolio.
I mean seriously? I bought this book assuming that ill be learning more about how a fund manger thinks and how a portfolio is made. The technical ratios and how they co relate and how they help in fishing out the gem from the chaos that the share market is.
They actual relavent stuff is barely a chapter long. Disappointed.
For new investors takeaway from the book are
1. Do not look at stock market as a money spinning tool.
2. Buy good quality stocks and hold for a minimum of 10 year.
3. Invest in Dirct mutual funds.
4. Sebi is constantly working to protect investors.
5. In mutual funds always pick growth option.
6. Don't churn you portfolio regularly as the brokerage and other charges hurt your portfolio.
7. The commission you pay to mutual fund brokers via non direct funds compound as well.
8. If you are investing 10k per month After 25 years difference btwn direct and non direct can be upto 10-20 lakhs
9. Mutual fund house purposefully make it difficult for you to buy the direct funds from them
10. Instead of investing in a large cap funds invest in index funds.
Having said that, the final chapters take you through some numbers on how the past coffee can portfolio have performed.
Anyways... The book does its best to scare you away from investing in Gold and real estate. Then they introduce you to traits like patience and preserverence. They shamelessly plug their parent company every where.
Finally the financial advisor conviniently arrives as they are 10 years away from their doom and saves the day with coffee can portfolio.
I mean seriously? I bought this book assuming that ill be learning more about how a fund manger thinks and how a portfolio is made. The technical ratios and how they co relate and how they help in fishing out the gem from the chaos that the share market is.
They actual relavent stuff is barely a chapter long. Disappointed.
For new investors takeaway from the book are
1. Do not look at stock market as a money spinning tool.
2. Buy good quality stocks and hold for a minimum of 10 year.
3. Invest in Dirct mutual funds.
4. Sebi is constantly working to protect investors.
5. In mutual funds always pick growth option.
6. Don't churn you portfolio regularly as the brokerage and other charges hurt your portfolio.
7. The commission you pay to mutual fund brokers via non direct funds compound as well.
8. If you are investing 10k per month After 25 years difference btwn direct and non direct can be upto 10-20 lakhs
9. Mutual fund house purposefully make it difficult for you to buy the direct funds from them
10. Instead of investing in a large cap funds invest in index funds.
Having said that, the final chapters take you through some numbers on how the past coffee can portfolio have performed.
April 25, 2018
Disclaimer: I am somewhat biased to the Coffee can investing approach. Hence it's likely my review is somewhat generous.
The book offers some solid advice backed by numbers and stats on how to build a strong portfolio.
Indians are quite sheep like when it comes to investing(among many other things) as they tend to invest heavily in real estate and gold(generally due to social pressure & memetic rivlary). The book does give a decent picture on why it's not a prudent path and offers more profitable alternatives. Although it is a common sense advice to the rest of the world, this is considered a contrarian advice in India. Given how ubiquitously misinformated, ethically challenged and poorly accounted Indian market is, the book does a decent job of providing a big picture.
The frustrating part is that the book dumbs down all of concept. It assumes you don't know don't jack about anything and oversimplify things. Since target audience is the average Indian who has never invested or considered the possibility of investing in equity ( and positively unlikely to invest in anything other than gold & housing) one cannot complaint about this approach. Its recommended only for Indians who as never invested in any financial instruments other than gold & housing.
The book offers some solid advice backed by numbers and stats on how to build a strong portfolio.
Indians are quite sheep like when it comes to investing(among many other things) as they tend to invest heavily in real estate and gold(generally due to social pressure & memetic rivlary). The book does give a decent picture on why it's not a prudent path and offers more profitable alternatives. Although it is a common sense advice to the rest of the world, this is considered a contrarian advice in India. Given how ubiquitously misinformated, ethically challenged and poorly accounted Indian market is, the book does a decent job of providing a big picture.
The frustrating part is that the book dumbs down all of concept. It assumes you don't know don't jack about anything and oversimplify things. Since target audience is the average Indian who has never invested or considered the possibility of investing in equity ( and positively unlikely to invest in anything other than gold & housing) one cannot complaint about this approach. Its recommended only for Indians who as never invested in any financial instruments other than gold & housing.
March 25, 2018
I did not read this line by line but skimmed through this really. The central idea of the book - that of having a concentrated portfolio of high quality high growth businesses and staying invested for long period of time, is powerful. There are also some interesting thoughts about how to go about thinking about your personal finance.
The drawback though is that this could have been a 2000 word blog post rather than a full book.
The drawback though is that this could have been a 2000 word blog post rather than a full book.
October 2, 2018
Very simple concepts and you almost get a feeling that there is very little to learn from this but the rigour of analysis is impressive. Same ideas come across as more convincing as you complete this book!
February 19, 2022
The book offers good investment strategies. Offers a very watered-down analysis of multiple investment avenues. It gave a lot of directions to think on, to a noob investor like me. The only con is that its repetitive. You end up reading the same tips over and over, in different words and examples. It believes in long term research based investments in secure and big conglomerates with a tinge of high risk small cap and mid cap mutual funds. I had a bias set in favor of the returns from land and property investments over stock market which got undone after reading the examples in the book. I think deciding the best investment avenues for yourself is a slightly more complex analysis than just understanding and following any one investment strategy and what I liked about the book was that its clear cut overt analysis offered me insights into how to make an investment decision for myself.
August 13, 2018
If you are looking to get started on your investing journey, this is a good primer. The author shows the time-tested way to create substantial returns over a lifetime. In the olden days, cash saved would be put into a coffee can, never to be touched unless there was an emergency. If one can allow high quality investments to marinate over longer periods of time, the results can be stupendous !
December 25, 2018
1. Invest in good companies and hold for long. This book defines a good company as the one that has consistently grown topline by 10% and ROCE of 15%
2. Probability of positive return increases with increase in holding period to almost 100% at a 10 year holding period.
3. Be vary of Mutual Fund costs and evaluate returns net of expenses.
4. Invest in short term debt rather than long term debt.
2. Probability of positive return increases with increase in holding period to almost 100% at a 10 year holding period.
3. Be vary of Mutual Fund costs and evaluate returns net of expenses.
4. Invest in short term debt rather than long term debt.
April 4, 2022
Good primer of various asset classes in the Indian market, and a reminder on why investment in great companies will trump lesser P/E but mediocre scrips
September 7, 2020
This is a remarkable book by Saurabh Mukherjee who tells you about some principles in investing in stocks that you may already know but seldom practice. The title of the book is based on a real life story of someone who bought some shares and forgot about them having stuffed the share certificates in a coffee can for a number of years. This has become a metaphor for passive investing - the act of forgetting has been turned into an art of forgetting about the stocks you buy. The author, however, identifies some essential qualities required by the stocks before you put it away in a ‘dematted’ coffee can for at least ten years. A typical coffee can portfolio should consist of companies with an annual sales growth of minimum 10% every single year for the previous 10 years. That is not all. Such companies have to give a return on capital employed (ROCE) of at least 15% to be qualified to be eligible to be put in the coffee can. The author buttresses his case with facts, figures, graphs and charts of Indian companies who have delivered handsome returns to the investors in the past. Though the concept of staying invested in the stock market for maximum returns is nothing new, the author deserves credit for arguing the case with convincing logic.
The author’s arguments based on coffee can principles would be considered counter intuitive by an average trader in the market. After all, a trader genuinely believes that he makes money by actively participating in the market and that too as often as possible even if he is told that it is the broker who makes all the gains almost always in the bargain. The Coffee Can Portfolio is for the passive investor. Investments in stocks without a built in element of speculation is like the concept of capitalism without bankruptcy. Those who consider trading in shares as a supplementary source of income, this book is of no use. This book is more about wealth creation than income generation. This book would also disappoint those who have the habit of declaring their daily gains in the market (no one really announces the losses they make) over their sun downers with their friends in the evenings. In short the very thought of not even looking at your portfolios for long periods of time is like robbing Sensex of the last three letters!
The book is written in a simple language and not too difficult to understand unless you dive deep into the appendices. These appendices with graphs and charts are used by the author to buttress his theory. These appendices are also eye-openers to the readers when it comes to the market movements of winning stocks. You may consider an investment theory being associated with beverages a fad or a flippant way of looking at the serious business of trading in stocks. Far from it. One should consider putting some stocks in the coffee can and build an additional portfolio around this core stock of stocks for trading thereby de-risking ones’ overall investments. The wealth of information that the book gives you can help growing your own wealth in the end.
The author’s arguments based on coffee can principles would be considered counter intuitive by an average trader in the market. After all, a trader genuinely believes that he makes money by actively participating in the market and that too as often as possible even if he is told that it is the broker who makes all the gains almost always in the bargain. The Coffee Can Portfolio is for the passive investor. Investments in stocks without a built in element of speculation is like the concept of capitalism without bankruptcy. Those who consider trading in shares as a supplementary source of income, this book is of no use. This book is more about wealth creation than income generation. This book would also disappoint those who have the habit of declaring their daily gains in the market (no one really announces the losses they make) over their sun downers with their friends in the evenings. In short the very thought of not even looking at your portfolios for long periods of time is like robbing Sensex of the last three letters!
The book is written in a simple language and not too difficult to understand unless you dive deep into the appendices. These appendices with graphs and charts are used by the author to buttress his theory. These appendices are also eye-openers to the readers when it comes to the market movements of winning stocks. You may consider an investment theory being associated with beverages a fad or a flippant way of looking at the serious business of trading in stocks. Far from it. One should consider putting some stocks in the coffee can and build an additional portfolio around this core stock of stocks for trading thereby de-risking ones’ overall investments. The wealth of information that the book gives you can help growing your own wealth in the end.
January 13, 2021
Great introduction to basic concepts about Indian equity investments vs the other options. Within equity investments, fundamentally the authors make a point to invest in few good quality stocks and leave the investment grow along with explanation about how to find these good stocks.
I like the way the data is used to explain each idea. Out of the few investment related books contextualized for Indian market this surely one among the top.
I like the way the data is used to explain each idea. Out of the few investment related books contextualized for Indian market this surely one among the top.
July 14, 2022
Like umpteen other screwed-up traders, five six year back, I also had my hands and ass burnt in few swing trades, after the crazy initial successes usually attributed to the luck of the newbies.
Having not recovered from the losses even after few years of the debacle, and several hours of sitting and staring, in vain, at my portfolio screen expecting a miracle, finally I reached the conclusion - Stock Trading is not my cup of tea.
When I came to know that there is an alternative hot beverage - type of investing, which in fact had been the success mantra of many rich investors, I got interested in coffee, instead of tea.
To understand more about coffee can investing, I decided to do one thing that I love to do the most - READ.
Well, this book title and fame suggested that it is going to surely make me a coffee fan.
But, No.
I can't say, I became much wiser in investing, apart from nodding that came from confirmation bias - real estate & gold investment are things of the past, probability of losing your money and sleep over day & derivative trading are pretty high, investing for long-term in strong companies in robust sector with good fundamentals and able management is the way to go for the lazy and the rich.
Read it if you are in your 20s and new to the world of investment. Else, avoid.
Having not recovered from the losses even after few years of the debacle, and several hours of sitting and staring, in vain, at my portfolio screen expecting a miracle, finally I reached the conclusion - Stock Trading is not my cup of tea.
When I came to know that there is an alternative hot beverage - type of investing, which in fact had been the success mantra of many rich investors, I got interested in coffee, instead of tea.
To understand more about coffee can investing, I decided to do one thing that I love to do the most - READ.
Well, this book title and fame suggested that it is going to surely make me a coffee fan.
But, No.
I can't say, I became much wiser in investing, apart from nodding that came from confirmation bias - real estate & gold investment are things of the past, probability of losing your money and sleep over day & derivative trading are pretty high, investing for long-term in strong companies in robust sector with good fundamentals and able management is the way to go for the lazy and the rich.
Read it if you are in your 20s and new to the world of investment. Else, avoid.
August 14, 2021
Coffee Can Investing is a wonderful book for someone starting out on the investment journey. I came across Saurabh Mukherjee's books last year and have been truly enamoured by his ideas on investing in simple, moated and profitable businesses which compound and generate handsome returns over time.
Coffee can investing starts with a story of two individuals- one senior salaried corporate professional and other a businessman. Both had their own sets of investment mistakes like too much money in real estate, bank FDs etc.
The book builds a premise on the investment mistakes like these and talks about the real estate sector in India, Mutual fund and it's evolution in India over the past two decades and then finally talks about index funds and building a coffee can portfolio which is a PF of high growth and high efficiency companies and hold them for a long period of time( at least a decade) and enjoy wealth creation.
The book has a historical analysis of stocks which fit into the criteria and has evaluated the returns of such a portfolio over running periods of 10 years for every year since 2000s
Overall a good read for beginners willing to explore investment ideas and being financially prudent.
Coffee can investing starts with a story of two individuals- one senior salaried corporate professional and other a businessman. Both had their own sets of investment mistakes like too much money in real estate, bank FDs etc.
The book builds a premise on the investment mistakes like these and talks about the real estate sector in India, Mutual fund and it's evolution in India over the past two decades and then finally talks about index funds and building a coffee can portfolio which is a PF of high growth and high efficiency companies and hold them for a long period of time( at least a decade) and enjoy wealth creation.
The book has a historical analysis of stocks which fit into the criteria and has evaluated the returns of such a portfolio over running periods of 10 years for every year since 2000s
Overall a good read for beginners willing to explore investment ideas and being financially prudent.
January 12, 2019
I expected it will be a quick read. But it took 15 days in my busy schedule. It discusses about few important aspects of investment but that’s it. I didn’t like the part, why they always tag their parents company in the book. I mean if one book is, to take you through ideas why you need to tag your parents company always? The philosophy in the book given was out of my reach, One place it compares Rahul Dravid cricket score with a stock performance. I expected more insight of investing and more fundamentals from this book.
Having said that, this book will take you through some portfolio strategy which worked and shows reasonably convincing numbers to follow. The numbers in CCP are one which will give you confidence. I will recommend this book only for beginners. Happy reading.
Having said that, this book will take you through some portfolio strategy which worked and shows reasonably convincing numbers to follow. The numbers in CCP are one which will give you confidence. I will recommend this book only for beginners. Happy reading.
December 12, 2018
Financial literature is full of books on stock-market investments, and yet it is difficult to find a good book grounded in the Indian market context. This book should be a welcome addition to the shelf of anyone who wants to learn about investing, is even remotely interested in the stock market, just about to start his/her career or just plainly anyone who's earning an income. Financial literacy is necessary, and the bigger challenge here is that it's not easy to differentiate good advice from bad. Coffee Can serves as a good stepping-stone in the world of investments.
February 28, 2018
Average book . The earlier book ( the unusual billionaire) was better. Lacked originality on quantification & analysis . It starts with story telling premise which is lousy and mediocre . Overall very less takeaways & essence.
October 19, 2018
Was my introduction to the simplest understanding of the market and financial investments. Maybe not the best book to be the sole read on the subject but definitely the best entry point to reading more and understanding more about the Indian market and investments.
October 30, 2020
Do you want to learn investing from someone who is also an expert in insider-trading?
https://www.business-standard.com/art...
https://www.business-standard.com/art...
June 12, 2018
Amazing. To be read again & again to get basic concepts of how the financial world works.
September 7, 2018
This is the second book of Surabh Mukherjea, I have read. I have enjoyed Unusual Billionaires . This book is also good read if you are new to investing.
September 16, 2018
Good for getting basics clear
November 20, 2018
Good view on ccp Investing..
February 11, 2019
It is interesting. Basically teaches one to be patient for earning profits. Does not recommend churning the portfolio. Has too many chart and figures.
October 16, 2020
Highly recommended for people with an Investment horizon of 10 yrs & above
June 25, 2019
Wonderful book
Very relevant and practical book. Helped in clarifyibg lots of doubts. Thank u Saurabh and team. Now going to read ur other books well.
Very relevant and practical book. Helped in clarifyibg lots of doubts. Thank u Saurabh and team. Now going to read ur other books well.
April 19, 2020
A good book about financial planning.
Gives insights about various asset classes and their returns over a period of the last 20 years.
Helps in building your financial goals and plan accordingly.
Gives insights about various asset classes and their returns over a period of the last 20 years.
Helps in building your financial goals and plan accordingly.
July 5, 2021
Good book for investors who want to invest for long term. Author lays down certain principles for long term gains, and explains why principles are effective based on the historical stock market performances.
December 15, 2020
4 stars just for all the exhibits. Otherwise too much indirect marketing of author's firm, quite a bit of repetitive content, and has some skip worthy content.
January 1, 2021
Saurabh is brilliant at explaining his research based on real numbers. This book is a clear example of that. With coffee can portfolio he explains why simple and sensible investing in quality stocks outperforms index.
February 6, 2021
This is one of the best book for beginners to learn how to make a great portfolio that will help them to achieve financial goals. It really clear some basic concepts for me. How stock market investment and get high return with low risk explained in this book. With detailed examples and other sources makes things clear to anyone. Recommending to those who just have started their financial journey.
April 28, 2024
Very good one for beginners who want to start their personal finance learning journey
Displaying 1 - 30 of 289 reviews