What I Learned About Investing from Darwin

The investment profession is in a crisis, and Pulak Prasad offers a new approach based on evolutionary biology. He provides three mantras of investing: Avoid big risks, buy high-quality at a fair price, and don't be lazy. Prasad makes a persuasive case for a strategy that rules out the vast majority of investment opportunities and advocates permanently owning high-quality businesses.

Format: Hardback
Length: 328 pages
Publication date: 23 May 2023
Publisher: Columbia University Press

The investment profession is currently facing a crisis, with the vast majority of equity fund managers failing to consistently outperform the market over the long term, resulting in significant outflows from active funds to passive funds. This has left investors searching for a new approach to investment management.

In his book, "What I Learned About Investing from Darwin," Pulak Prasad presents a philosophy of patient, long-term investing based on insights from evolutionary biology. Prasad draws key lessons from core Darwinian concepts and applies them to the world of investing, using vivid examples from the natural world and compelling stories of good and bad investing decisions.

One of the key insights Prasad draws from evolutionary biology is that survival is not about being the best, but about being the most adaptable. He argues that investors should focus on avoiding big risks and investing in high-quality businesses at a fair price, rather than trying to outperform the market by taking on excessive risk.

Prasad also advocates for a strategy of permanently owning high-quality businesses, rather than constantly seeking new investment opportunities. This approach is based on the idea that successful businesses have a durable competitive advantage and can withstand market fluctuations over time.

In addition to his investment philosophy, Prasad offers three mantras of investing: Avoid big risks, buy high-quality at a fair price, and don't be lazy—be very lazy. These mantras are based on the idea that investors should focus on long-term growth and avoid making short-term decisions that may be detrimental to their long-term financial goals.

Overall, "What I Learned About Investing from Darwin" provides a fresh perspective on investment management and offers valuable insights for investors seeking to improve their returns over the long term. By applying the principles of evolutionary biology to investment management, Prasad challenges traditional investment strategies and provides a roadmap for investors to achieve sustainable long-term growth.

Weight: 698g
Dimension: 242 x 167 x 29 (mm)
ISBN-13: 9780231203487