Mastering an art requires perseverance and continuous efforts. Stock investing is just another art, which holds true to this phenomenon.
It is rightly said, “Investing is an art, and this art can be learned over time.”
On that note, let’s find out what experts have learnt over years on the topic of investing.
Here are top investing books that one should definitely read to know about great investment knacks. They are classified into 3 segments on the basis of the type of investor that you are, namely- Beginners, Intermediate investors, Experts.
- Learn To Earn- This book by Peter Lynch gives you a great insight into market, economy and capitalization. The book is very well-written and can be easily understood even by people who don’t have a commerce background. It is a great book to read if you are starting your journey in the stock market world.
- Stocks to Riches- This book by Parag Parikh is written in easy and understandable language. The author has written the whole truth of stock markets in this book through his years of experience in the market. Some of the critical concepts covered in this book include- what makes a stock market bubble, how does it burst, the right strategy for investing, etc.
- A Random Walk down the Wall Street by Burton G Malkiel- This book is a Wall Street classic. This is a kind of the first book that introduced the efficient market theory and talked about the value of index funds and indexing your money rather than relying on mutual funds.
The book comprises a tonne of academic data and takes on a lot of common Wall Street truism and idioms like The January effect. If you’re at all curious about efficient market theory and some of the arguments against active management, then this book is definitely something that you should check out.
- Common stocks and uncommon profits- The book explains the investment philosophy of how Philip Fisher finds growth stocks that lead to massive gains if held forever. After reading this book, you’ll have learned how to make a detailed analysis of a company to find its potential for future returns on investments.
- The Dhando Investors by Mohnish Pabrai- Dhanda means business. What the author is basically saying in this book is how to invest in stocks as if you were buying businesses and he makes us believe that it is not always necessary that high risk can only fetch high returns. It is possible to get high returns with low risk. It is a fantastic book where we get to know about the Patel family and how they became one of the wealthiest families in the world and now own 40% of the hotels in America.
- One up on Wall Street- Peter Lynch, the author of this book, is the most successful mutual fund manager with an annual return of 30% on his portfolio for 30 years. This classic book explains all the essential basics that a one should know before investing. From preparing to invest in the long-term investment view, everything is covered in this book. Here, Peter Lynch describes the stock-picking approach for Winning stocks. This book needs to be in your hands if you want to learn all about stock investment basics.
- Poor Charlie’s Almanac by Charlie Munger- It's a beautiful coffee table book with some beautiful, inspiring words and illustrations in it. The book consists of Charlie Munger's best advice given over 30 years in the form of 11 speeches given as a commencement address and round table talks. Some of the key points highlighted in the book are- Strive to be objective, Always Invert, Be interdisciplinary, Circle of competence, Latticework of mental models, Wait to find great deals, Build the right model, importance of psychology and bad decision making.
- Rich Dad and Poor Dad by Robert Kiyosaki- This book goes through a lot of the basics of why one should be an investor, why one should choose to invest than save. The book gives a clear picture of the difference between assets and liabilities and how rich people think about money versus how poor people think about money.
- The Intelligent Investor by Benjamin Graham- In the investing world, this book is pretty much considered the Bible of investing. Warren Buffett believes this book to be the best book written on stocks ever. The book explains the investing approach for a defensive investor and enterprising (aggressive) investor. Graham also introduces the concept of Mr. Market and the Margin of safety in this book.
- Security Analysis- Saying that Benjamin Graham was Buffett's teacher and mentor, it's only natural that we have a second book on this list. If the first book grabbed your interest, this one would really get your investor blood pumping. Unlike The Intelligent Investor, which is for a much broader audience, this book goes deep into the principles of investing. It will teach you the importance of conducting an investment operation and understanding each company from the perspective of a financial analyst.
There can be no bigger treasure than a book.
A book involves decades of research and learning. Therefore, when you read a book, you are grasping someone else’s learning. Their dedication and inspiration will inspire you and broaden your wisdom and perspective. To be the best in your field, you must take up the habit of reading. With every page that you read, you become better and better..So start learning if you are a novice, and master the art if you have already started!
You can order these books from our Amazon Bookstore. Happy Reading!