There is a plethora of information available at fingertips when it comes to the stock market. This amount of information may overwhelm the beginners trying to learn the basics of investments. Also, there are many best stock market books one can get hands-on. If you are a keen reader interested in the stock market, then the below mentioned list is for you. These stock market books will help you understand the basic knowledge and how the stock market operates. Following is the list of best books on the stock market one can read and understand easily.
One Up on Wall Street – Peter Lynch
This is one of the best stock market books which is a perfect guide for a beginner. All the aspects of stock markets and investment planning are explained in this book. This book describes everything from how, when, whys to the long-term investment approach and so on. You can find a detailed approach for 6 six different types of stocks in this book. The author of the book – Peter Lynch, is one of the most successful stock market investors of all time. Amateur investors with very basic knowledge will learn how to identify the stocks that will yield decent returns in the long run.
This book is considered the holy grail of the stock market and is a must-read book for everyone. This book is written by Benjamin Graham who is also the mentor of the greatest investor Warren Buffet. This book mainly focuses on the fundamentals of value investing. The three main concepts covered in this book are investing approach for types of investors viz. defensive and enterprising investor, the second concept is Mr. Market and last is Margin of safety. Mr. Market is the analogy that explains the fluctuating nature of the market and how one can learn risk management.
Beating the Street – Peter Lynch
This is another amazing book by Peter Lynch, who was also a best in class mutual fund manager of the Magellan fund at Fidelity Investments. This is one of the best stock market books for investors who are keen on the stock market for long-term value investment opportunities. This book will help you to pave a path in the stock market and generate wealth with your understanding and learnings. This book explains all the concepts in layman language which is easy to grasp. With such an approach you can easily understand the fundamentals of picking your stock. Investors can learn how to identify long-term value investment opportunities throughout this book.
Investonomy: The Stock Market Guide That Makes You Rich by Pranjal Kamra
If you have just started off investing in the stock market, then this book is for you. This book is your guide through all the nuances of the stock market. Each theory is supported with examples that encourage the reader to invest fearlessly in the stock market. This is the best book for the stock market as the author has curated graphics that explain the methods and concepts of investment interestingly. These illustrations and graphs make the read more lucid and grasp the readers’ attention. With this book, the reader will learn more about the psychology behind investing and explains the difference between a naive investor and a smart investor.
Common Stocks and Uncommon Profits – Philip A. Fisher
This book is the favorite of every reader who is interested in learning the growth stock investment approach. This book was published around the same time when ‘The Intelligent Investor’ by Benjamin Graham was published. Unlike other investors, Philip A. Fisher was into growth stocks and he encouraged his readers to learn more about growth stocks. This is one of the best stock market books which is a timeless piece and you can apply the concepts even today. The book helps you understand the type of business and guide you through how to yield profits from such stocks.
The Warren Buffet Way – Robert G. Hagstrom
This book offers learnings related to Warren Buffett’s investing strategy. You can learn about Warren Buffett’s way of investing in stocks in detail with the help of this book. In this book, all the concept which leads to growth like Buffett is covered. You can apply these learnings individually to your portfolio. The best part about The Warren Buffett Way book is that the author tends to stay away from complex terminologies which makes the book lucid to anyone who wants to learn value investment. This is the best book for the stock market which helps you with classic Warren Buffett investment strategies. You can implement these strategies for growing your wealth.
Stocks to Riches – Parag Parikh
This book is a must-read for all Indian investors. This book uses very simply and easy to understand language. The author explains everything about the Indian stock markets in this book. If you are a beginner, you can learn how to avoid the stock market beginner’s mistakes. If you read this book you can identify all the small mistakes a beginner tends to make and save yourself from huge losses. Learning from your mistakes can cost you in the stock market. Avoid making these mistakes while you work towards your financial goals. This is one of the best books for the Indian stock market which is so lucid that even a fifth-grader can understand it.
Bulls, Bears and Other Beasts: A Story of the Indian Stock Market – Santosh Nair
This book highlights the exciting journey through Dalal Street giving details about the Indian Stock Market post-liberalization. This is one of the best books for the Indian stock market as it explains all the incidents and events, the author tried his best to avoid technicalities and complex terminologies. You can learn about screen-based trading and how it bought a unique dimension and transparency in the markets. Dalal Street has experienced major financial scams such as the Harshad Mehta and the Ketan Parekh scams. You will also learn the evolution of SEBI as a regulator. As he explains all this, he also goes on to highlight the advent of big Financial Institutional Investors and their popularly growing influence on the market.
The little book that beats the market – Joel Greenblatt
The book ‘The little book that beats the market’ highlights a ‘MAGIC FORMULA’ while you make choices from different identified stocks. This formula gave huge returns when applied by focused and patient investors. With the magic formula by the author, investors can identify potential stocks efficiently. The formula includes two important factors. They are mainly Earning yield & Return on Capital. As an investor, you should consider these two key factors primarily whenever you decide between various stocks in any stock market before investing. Using this formula, you will surely yield amazing returns. Even Indian investors can apply this formula in the Indian stock market.
Learn to Earn – Peter Lynch
This book gives you details of the market, economy, and capitalization. This book is very well written which makes it understandable to people who don’t have a commerce background. It is a great book for beginners that will guide them throughout their journey into the stock market world. Peter Lynch gain prominence for his writing as he geared towards a younger audience. Learn to Earn describes many business basics for young investors who just started in the stock market.
Investing can be confusing to many investors, with vast options that can either generate or dissipate one’s wealth. However, there are many books available on the subject offering valuable strategies and knowledge to make investment plans successful. Reading any of the above books one learns how to invest in the stock market in his capacities.
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