Best Books I Read in 2024
By Harini Dedhia
Dear Investor,
“Reflections” and “Best of” lists are ubiquitous year end traditions. One that I most
enjoy and come back to every year is to reflect upon the best books I read in the year
and what they taught me about investing.
The reads of 2022 were sobering. They spoke of how little we know, and how we must
learn to adapt in the face of new knowledge. Wisdom therefore lies in knowing when to
react and when to simply absorb. In addition to reinforcing the lessons of 2022, the
books I read in 2023 taught me the power of integrity and how a lack of it can be a
slippery slope.
2024 has been an interesting year - instead of a single central theme, it was a year of
widely varying lessons - from understanding the power of true partnership to having an
‘invert, always invert’ framework and finally, the virtue of patience. In a surprising turn
of events, 2 of the top 4 books I read this year were fiction!
Hope you enjoy reading my takeaways from the best books I have read this year.
Jugalbandi: The BJP before Modi by Vinay Sitapati
This was an exceptional read that surprisingly came
from an analyst meet of a large FMCG co. run by the
author’s brother. What was most revealing was the
character of our ex-Deputy PM, Lal Krishna Advani. A
misfit in Indian politics, but exactly what Indian politics
needed - a man that is fair, never puts himself above
party and never puts his ideology up for sale. This was
contrasted against our ex-PM Vajpayee Ji, who
demonstrated political pragmatism that allowed him to
cut across party lines. Great leaders that survive and thrive always have a silent counter-weight.
Our current PM and his Home Minister epitomize this. The world of business and
investing is no different. Warren Buffett has famously said that his partner, Charlie
Munger, was the architect of Berkshire Hathaway's success and he merely the visible
contractor executing the vision.
To have someone you trust, but with a complementary mindset/skill-set, allows you to
not be blind-sided and manage all situations better. This is especially pertinent when it
comes to the more philosophy based or allocation-based discussions. Two people
bound by a common purpose and value system can help sharpen each other’s
execution.
The same is true in businesses as well. We have noted that the leaders who are
exceptional at bringing about growth are generally supported by a general that can
rally the troops behind the strategy, keep costs in control and the house organized. It
is extremely difficult for a person absorbed in day-to-day operations to afford
themselves a different vantage point and think of growth.
Orbital by Samantha Harvey
This book was as unexpected as it can get. You don't expect someone who has not been to space, let alone not having studied astronomy formally, to write about a day in the life of six astronauts aboard the International Space Station (ISS) so intimately. You don't expect fiction to read like this.
In viewing life and our planet from a window on
the ISS, suspended in space we realize the merit
in all those little things we take for granted. The
vantage point of being removed from earth
itself, helps us realize the bounty of our planet.
Occasionally a change in viewing lens is required to truly understand the larger picture
in investing too. Don the hat of an operator on occasion to understand what are the
pertinent questions to ask a portfolio company. Suddenly, the question of how much
the growth will be in the next quarter will transform into, how will you hire people to
service new business over the next 2-3 years? In heated markets like that of FY24, a
longer-term lens helps us identify and parse out mere narratives from truly great
execution potential. Companies promising 3-5x in 3 years without any expansion of
gross block get weeded out from consideration when the lens to view changes.
New lens enables us to ‘invert, always invert’.
Curtain by Agatha Christie
In bringing the "curtain" down on Hercule
Poirot's illustrious post-retirement career and
life as a detective, Dame Agatha Christie
presents a unique mystery novel; one where
both the victim and the perpetrator of the
crime are unknown to us at the start. Given
that the book is written from the point of view
of Detective Poirot’s friend- Hastings, enables a
periodic reminder from the grade A detective
to ‘invert, always invert’ and always question
basis motivation.
When seeing a company raise funds, a prevalent trend in today’s market, always ask
yourself why? What would motivate this company to raise equity vs. debt? Why is the
promoter diluting their own share in the company? How much of a game changer is
this fund raise going to be for the company for them to do this? Asking this question
will help differentiate between those who are merely trying to make a buck from the
ongoing ‘party’ in the short term and those that are truly building with an intention to
last.
The Upside Down World: Meeting with the Dutch Masters by Benjamin Mosers
This was a book I fully assumed would sit
unfinished on my bookshelf for a long time.
Moser's essays on the great Dutch masters
are however rare in their freshness. Each
essay is not just an exposition into the
artist's style, subject of choice but also
something pivotal in their personal lives.
With every essay on a master, the author
questions our notions of art? Why do some
artists get recognized during their
lifetimes? Why do some get discovered
much later?
And there lies our final lesson - Greatness always gets recognized sooner or later.
The same is true for business. Seeing someone make a quick buck in the short term
can be frustrating. Yet in investing, as in life- great execution will always eventually
find an audience. The key is to patiently partner with those businesses that
consistently execute well, markets do appreciate it sooner (rather than later given the
information age we stay in!)
Patience stemming from shifting one’s viewing lens to a slightly longer horizon is an
edge that remains up for grabs in the investing world today. Honing in with the ‘invert,
always invert’ framework and the choice of a right sparring partner is something I look
forward to doing more of in 2025.
I hope you enjoy reading these books, as much as I did. As always, we thank you for
your continued support and faith in choosing us to be your partners in your wealth
creation journey. Wish you and your loved ones a very happy new year!