As the title suggests, this books has two themes. One, a discussion of Charles Darwin’s evolutionary theories and two, the translation of those theories to good investment tips. These are two areas that Prasad has expertise in. Accordingly, he prefaces each chapter with a quote from Darwins’s Origin of Species and and one from Warren Buffett’s many letters to his shareholders.
Let’s start with the first theme. Prasad is a seasoned investor in Indian equities with an impressive track record. His firm, Nalanda, achieved a 20% annualized return on its first fund over 15 years, compared to 11% for the benchmark index. This means $1 invested in the fund grew to $14, versus just $4 in the index—a remarkable feat. However, I found some of his views debatable. For instance, Prasad argues that businesses in conglomerates don’t make good investments, yet examples like TCS and Trent from the Tata group tell a different story — they are up 10 times and 21 times in the same period and Trent is up a further 5 times since then. There is also some inconsistency in his approach; while he avoids buying stocks at high valuations based solely on future prospects, he justifies holding existing ones with the same rationale. His strategy is also largely Buffett-inspired so there may be nothing new for readers familiar with Buffett’s style. Despite these critiques, his proven success make his insights worth exploring.
The book’s second theme, evolutionary theory, is less compelling. Although the blurb claims it influenced Prasad’s investment style, the connections often feel forced—such as the stretched analogy between sea urchins, McKinsey, and robust businesses. Prasad is clearly well-versed on the subject and it almost feels that he has simply used it as a “hook” to distinguish this book from many other similar books on investing. That said, some examples, like honeybees’ nesting sites in the final chapter, are intriguing.
At 275 pages, the book is concise, and Prasad’s writing is accessible. However, his frequent repetition of favoorite themes — such as buying great businesses, never selling them, and focusing on Return on Capital Employed — can feel redundant. Despite these flaws, the book offers valuable insights for young investors. Learning from a successful investor like Prasad is always a worthwhile experience.
Pros: An insight into Prasad’s excellent investment record
Cons: Largely “Buffett-isms”, stretched comparisons between evolution and investing