10 Best Stock Market Books Every Investor Must Read
In this article, we tell you the 10 best stock market books for beginners that will help you get started in the stock market. And if you have the flair and an ounce of luck, you might just be the next Jhunjhunwala that we will write about someday in our blogs.
A cursory Google search for the phrase ‘stock market millionaire’ throws up more than 4.7 million results.
These results include several examples of smart investors from across the world, who made a fortune by investing in the stock markets.
No wonder then that the stock markets remain an attractive proposition for those who have some spare cash, and want to make big money out of it.
However, not everyone who invests makes news as the next rags to riches story.
The reasons are many. Most important of these is the lack of knowledge about the stock market and how it operates.
While not everyone can be as lucky as Warren Buffet to be mentored by Benjamin Graham, a few books can be a good starting point for getting acquainted with the stock markets.
10 best stock market books for beginners
Here is the list of 10 best stock market books every newbie should read before starting their investment in the share market.
The Intelligent Investor
Author: Benjamin Graham: Published in: 1949
The book is considered the Bible of the Stock Market. The book is one of the oldest on the subject and is authored by the Father of Value Investing – Benjamin Graham.
What makes this book a valuable read is the author’s philosophy of value investing that helps investors take calculated risks, and guards them against the stock market errors.
Further, the author advises investors to diversify investments and not to look for crazy profits but focus on sustained returns.
Graham also explains how one can evolve long-term strategies that will help one achieve one’s financial goals.
The strategies and tips shared by Graham have stood the test of time, and present some indispensable truths that are must-know for all beginners.
The Essays of Warren Buffett: Lessons for Corporate America
Author: Warren Buffet : Published in: 1949
The most successful investor, Warren Buffet, spills some priceless pearls of stock market wisdom in this book.
A compilation of letters that he wrote over the past few decades, to the shareholders of Berkshire Hathaway, the essays are an informal education for those in the early stages of investment.
Buffet explains how the interface between a company’s management and its shareholders operates. On the surface, this may look like superfluous information. But, considering that the company exemplified here is the Berkshire itself, the takeaway from the essays becomes important.
This understanding will alert investors of any possible losses due to the malfunctioning of this interface in their investments.
The author also supports purchasing shares when they are being traded at a discount and opposes following investment trends.
Beating the Street (1993)
Author: Peter Lynch, Published in: 1993
Ever wondered how the expert money managers manage to rake up big moolah from the stock market while you just manage to scrape through?
In Beating the Street, Peter Lynch allows you to take a peek into his mind and his thought processes that fuel his investment decisions.
The investment genius shares tips on everything from how to create a successful investment portfolio, to designing a mutual fund strategy, and explains how an otherwise common investor can invest with dexterity to craft the same success as an expert.
Lynch also encourages readers to do their research to know more about a company before deciding to invest in it.
Keeping in view the roaring financial success that Lynch created for the Magellan Fund, the book provides valuable insights from one of the most successful stock market investors and hedge fund managers of the 20th century.
Common Stocks and Uncommon Profits
Author: Philip Fisher: Published in: 1957
At a time when Philip Fisher’s peers were talking about value investing, Fisher focused on growth investing. As Warren Buffet suggested, growth investing and value investing cannot be put in silos and treated differently.
Rather, an intelligent investor needs a blend of both. This book is a great starting point for any investor looking forward to bridging the gap between the two approaches to multiply his returns.
In this book, you will find tips on what to buy, where to buy & when to sell, along with 15 points to look for in common stock.
And yes, Philip Fisher happens to be one of the investors that Warren Buffet is influenced by.
Need still more reasons to pick this one of the best stock market books up?
The Warren Buffet Way
Author: Robert G Hagstrom: Published in: 1994
It would be a grossly incorrect list of best stock marketing books without the mention of this book.
Every new entrant (or, at least, most) in the stock market has one ideal and, that is, most often, Warren Buffet. This book talks about the strategies that fuelled the spectacular success of Buffet.
The book offers some truly useful insights into the Buffet way of investing like,
“Don’t worry about the economy, because you can’t predict it. Only buy companies that will do pretty well regardless of the economy. If you are buying companies that will benefit off, of the next economic event then you will have to constantly adjust your portfolio and probably miss out on possible returns. Inflation is all that matters.”
“Manage a portfolio of businesses. Can’t make hundreds of good decisions over a lifetime, can only make a dozen or so. So focus on making a few great decisions.”
It is clear from the book how Buffet is influenced by Graham and Fisher’s ways of investing.
A must-read to learn about conservative investing that is based on sound research on the business.
The book is as much a classic as is the legendary investor himself.
Learn to Earn– Best Stock market book
Author: Peter Lynch and John Rothchild: Published in: 1995
There is hardly ever a time in one’s life when one does not need savings to maintain a good lifestyle. Starting from the teenage years, to post-retirement, savings are needed for different life milestones.
According to Lynch, despite these perennial needs for savings, there is little knowledge imparted through the formal education system on investing.
It is this gap that the authors aim to bridge.
In simple and understandable language, they illustrate how stock tables in the daily newspaper can be understood, how to interpret a company’s annual report, and why everyone should closely watch the stock market.
Further, they not only inspire you to invest but also to think like an investor.
Overall, a great read for beginners who need to learn from scratch.
Think and Grow Rich – Napoleon Hill
Author: Napoleon Hill: Published in: 1937
If you believe in the power of the mind, this book is for you.
Written in 1937 amidst the peaks of the Great Depression, Hill talks about the psychology of success and abundance in this bestseller. According to him, you can be wealthy if you believe you can be. Hill outlines the steps to take and those to avoid in the journey to becoming rich.
Weak desire brings weak results, and you can make your life what you want it to be, are some of the popular quotes from the book.
Hill conducted extensive research on the wealthy individuals of his time to put forth the 13 principles for success and personal achievement. He also believed that association with like-minded individuals can create synergistic energy and enhance performance.
How to Make Money Trading with Candlestick Charts
Author: Balkrishna M. Sadekar: Published in: 2011
Before we tell you what this book is about, here is what this book is not about. This text does not talk about – how to get rich quickly or, how to trade in intraday stocks.
The book talks about the candlestick charting method used by Japanese rice traders. These practices, which have been applied by the Japanese for more than 400 years, can be applied to the stock market with some refined features.
Well-written in simple language, and replete with real-life examples, it makes for a great read for beginners trying to get a grasp of the Indian stock market.
One of the best stock market books to learn candlestick charts. Must-read for every beginner.
Stocks to Riches by Parag Parikh
Author: Parag Parikh: Published in: 2011
You learn as you live. But learning from your mistakes in the stock market can prove fatal, at times. Stock to riches is recommended for anyone who wants to avoid such beginner mistakes.
Based on the Indian stock market, which has been Parikh’s trading ground for decades, the book explains the very basics of trading and the market. This understanding is important for anyone venturing into investing for the first time.
What makes the book all the more recommendable is the super-simple language conducive for even a 10-year old, and that Parekh shares guidelines and learning from his experience in the Indian stock market.
How to Avoid Loss and Earn Consistently in the Stock Market
Author: Prasenjit Paul: Published in: 2015
Now that’s the basic minimum expectation that every new investor has from the stock market – consistent earning.
Paul provides some useful insights into the strategies for consistent performance in the Indian stock market. Based on his personal experiences, these guidelines can prove helpful for any newbie investor.
Final Words: Best stock Market Books
These are the top ten best stock market books that will help both beginners and seasoned investors. If you are just starting out or, have a steam of stock failures behind you making you rethink your strategy, it may be a good time to pick up one of these best stock market books. They can help you learn, or even re-learn, to avoid future mistakes and create sustained returns from your portfolio.
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Did you use this guide to buy the best stock market books? Did you get stuck somewhere in the middle? Let me know how it went in the comments below!
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