Everybody is aware of the term stock market investing. It is place where you can gain as well as lose a lot of money if you don’t have the correct knowledge and expertise. If your are investing your money in the right stocks at the right time you are surely make super gains from that.
Before you start your investment journey, you should be through with all stock market basics and investment strategies. Here are some of the best stock market investment books to get in-depth knowledge on investment and the stock market. These best stock market books are written by veterans of the stock market industry.
One up on Wall Street by Peter Lynch
Once Up on Wall Street, written by Peter Lynch with John Rothchild, is one of the best books that discusses how to use what you already know to make money in the market. It serves as an extensive guide for investors .Peter Lynch is the Fundmanagers of the Fidelity funds. He has co-authored, with John Rothchild, some of the bestselling works are” Beating the Street’ and” Learn to Earn’.
When you make the effort of researching your stock and spending time on picking the perfect opportunity company, you should be able to generate a 12-15 % return on your stocks portfolio. Stick to industries that you understand, get a feel of growth prospects through easily accessible sources , buy at reasonable prices and hold on . Concepts were explained very effectively in simple language in this book . A person without finance background can also easily understand.
It talks about finding the “ten baggers” -the stocks that appreciate tenfold from the initial investment. Eventually, a few ten baggers will turn an average stock portfolio.
The Intelligent Investor by Benjamin Graham
The Intelligent Investor is considered the Bible of investing. It deals with the philosophy of value investing and explains all fundamentals of the stock market. Benjamin Graham is known as the father of value investment. The book is very helpful for new and professional investors. But the new investor has to be familiar with the basic term of stock market It guides you how to navigate through volatile share market without losing your money.
Graham explained the technique of “value investing” and “margin of safety” throughout his book . He clarifies the difference between speculation and long term investment in his book .He clarifies the difference between speculation and long term investment.
The author also discuss about how investors can make money and avoid loss to a minimum and how to control the emotion I would highly recommend this book.
“A Radom Walk Down Wall Street” by Burton Malkeil
The author Burton Malkeil is an American economist and writer.
In this book Malkiel illustrates how to make a broad portfolio of stocks. He examines the potential returns, not only for bonds and stocks, but also for the full range of investment opportunities, from real estate investment trusts and money market accounts to homeownership, insurance, and tangible asset.
“ It is not hard to make money in the market. What is hard to avoid is the alluring temptation to throw your money away on short, get-rich-quick speculative binges. It is an obvious lesson, but one frequently ignored.” is a famous quote by Malkeil. He clearly describes that the future movement of a stock can’t be predicted by what happened in the past.
“The Little Book That Beats The Market “by Joel Greenbalt
Joel Greenblatt is an American academic, hedge fund manager, investor, and writer.
This book explores the basic principles of successful stock market investing and derives a magical formula that is easy to use, and makes buying good companies at bargain prices automatic. Though the formula has been extensively tested and is a breakthrough in the academic and professional world, Greenblatt explains it using 6th grade math, plain language and humor.
It was first described by Joel Greenblatt in The Little Book That Beat the Market in 2005.The Magic Formula helps you find good quality companies that are trading at an attractive price. It does this by looking for companies with a high earning yield (companies that are undervalued) and a high return on invested capital (ROIC) (quality companies).This tells you how much money a company generates to the amount of capital invested by it. As ROIC numbers increase, the company makes good profits.
“How to make money in stocks” by Willaim O’Neil
The author William J. O’Neil is an American entrepreneur, stockbroker , who owned the stock brokerage firm William O’Neil & Co.
His book contains approximately 100 charts at the beginning that detail the price charts of the best performing stocks over the past 100 years. The book details how the 50 – day moving average relates to a chart along with the general market. It advises investors to cut losses at 7 – 8% from the purchase price of a stock. He is the creator of the CAN SLIM investment strategy .It is a proven technique for finding the best stocks before they make a huge gain.
Tips on picking the best stocks, mutual funds, and ETFs to maximize your gains .Anyone can learn to invest wisely with this bestselling Investment system .Even in the falling market, his system has helped us to find the big winners .This strategy really help us to avoid the big losses in a market downturn.
“Common Stocks and Uncommon Profits” by Philips A Fisher
The author Philips Fisher was an American stock investor who introduces the “Scuttlebutt” approach to stock picking in this book.
Scuttlebutt is all about getting first-hand information of a company from authentic market sources. ‘Scuttlebutt’ is an informal term that refers to a rumor or gossip. Phil Fisher popularized the term among investors and made it more meaningful. For investors, Warren Buffet also recommended this book and is is one of the classics.
This book clearly explain what to buy, when to buy and when to sell and when not to. It clearly explain how to find a growing stock and some important points that the investors must abstain from doing.
“The Warren Buffet Way” by Robert G Hangstrom
The author Robert Hagstrom is Chief Investment Officer of Equity Compass and Senior Portfolio Manager of the Global Leaders Portfolio.
This book outlines the business and investment principles of value investing practiced by American businessman and investor Warren Buffet.
This book clearly explain these principles of WARREN BUFFET
- Ignore what’s happening on the share market. It’s not worth paying attention to.
- Don’t pay attention to what’s happening with the economy. Economic cycles come and go.
- Always remember: you’re buying a business, not a stock.
“Beating The Street” by Peter Lynch
Peter Lynch is an American investor, mutual fund manager, and philanthropist.
This book clearly explains the thought process behind picking stocks, which is equally important for an investor.It talks about various companies and why Peter picked those specific companies to invest in. It is aimed at retail investor and explains how to devise a mutual fund strategy.
In this book Lynch specifies that stocks are not lottery tickets. There’s a company behind every stock . Once the skill of investing is learnt, the investors can research by themselves and acquire necessary knowledge to succeed.
“Learn To Earn” by Peter Lynch
In this book the authors Peter lynch and John Rothchild explain the basics of stock market in a such a simple way that even a high school child can understand it. He explains how to understand a company’s annual report, and why everyone should pay attention to the stock market. Lynch explains not only how to invest, but also how to think like an investor. At a time when individuals have to make important decisions about saving for college, this failure to provide a basic education in investing can have tragic consequences .
For those who know what to look for, investment opportunities are everywhere. The average high-school student is familiar with Nike, McDonald’s, and The Gap — but only a very few own shares in these companies or even understand how to buy them. This is because the basics of stock market and investing are not taught in schools.
” Stocks to Riches” by Parag Parikh
The author Parag Parikh is a veteran Indian investor and broker.
Parikh has written the book that all Indian investors have long been looking for. The author explains the basic concepts investors have to grasp while trading shares. He makes them understand the definitions of trading itself, speculation, sunk cost fallacy and loss aversion, mental aversion, to name a few.
Stocks to Riches helps the retail investor to make money by following the time-tested and proven guidelines provided in the book. It is a must read for brokers, analysts and retail investors. “Booms are always followed by busts and this occurs due to totally opposite behavior from the same participants. It’s a tug of war between fear and greed and greed and fear.” “If we invest in the right stocks with the right business model and fundamentals, over the long run we are assured of optimum returns.” “Successful investors sometimes believe that they are skillful because they are doing well with their investments. However, they fail to realize that their investment performance is the result of the stock market performance, not necessarily their individual abilities.”.These are some of the famous quotes of Parikh
Proper knowledge and guidance are essential to invest in the right stocks at the right time and gain maximum profit. I can promise you these books will definitely help you to achieve your financial goal. All the very best.
Which is the best book for stock market?
“The Intelligent Investor” by Benjamin Graham is the best book to learn investing in the stock market. The book is considered to be the “Bible” of investing .
What are the best trading books?
‘Trading in the Zone’ by Mark Douglas is the best book for trading. You can read my blog about ‘The best trading psychology books’ for more information
What documents are needed to invest in the share market?
The documents needed to open a Demat account are your PAN and Aadhar Card along with your bank details.