Top 5 best stock market investing books
Welcome to Stockinbulls in this blog we are going to discuss 5 best stock market investing books for beginners what are the must-read books for stock market investors or what are the first few books the beginner needs to read to Anna stock how the stock market works now as there are tons of books on investing available on the internet or Amazon Flipkart anywhere so I decided to that I will cover just five books so if you are planning to read just five books in this year then read these five books so let’s get started now.
5 best stock market investing books are-
1. One upon Wall Street – Peter Lynch
the first book that I would recommend you to read is 1 upon Wall Street by Peter Lynch Peter Lynch was a fund manager at fidelity investment and he managed maglin fund for 30 long years and in this period of 13 long years it give a return of 29 percent now 29 percent average annual return for a 13 long years is a very good returns so in this book Peter Lynch describes how to pick stocks for a retail investors basically he describes his journey as fund manager and one of the approaches he used to pick stocks another key things he which he frequently tells in this book is that be as retail investor has more benefits and advantages over the fund managers to pick stocks I mean just think about it fund managers have to buy stocks in bulk like they buy thousands of stocks of a company and fine teas number of stocks and getting rid of it is a big thing and moreover they also have a performance pressure I mean they have to continuously buy and sell stocks on the other hand fears retailer investors can buy stocks whenever we want if we cannot if we think that there is no good opportunity right now we might not even buy stocks so in the book Peter Lynch continuously see is that retail investors has a lot of benefits or advantaged while picking stocks whatever he also says that there are a lot of opportunities for the retail investors to pick common stocks I mean think about all the companies that you see banks zoos petrol firms or mobile e-commerce industry anything any think that you see or use hair has a company behind him so in this book one up on Wall Street Peter Elise describes all his principle or what are the different techniques he used and what other ideology behind be buying and selling of his different stocks and the book is very easygoing and like it’s not like any academic finance book you can easily sit on your couch and read this book over a weekend and all the concepts are very simple and you do not need any financial jargon or any knowledge of book keeping accounting or anything to rate this book but this book will teach you a lot of concepts and principles that a beginner need in order to pick good companies to invest.
So this is my first book that I will recommend you to read apart from one upon the Wall Street Peter Lynch has also written two other books so the first is learn to earn and second is beating the street so these two books are also very good but the value added in the book one upon Wall Street is very higher than the other two books and therefore I will recommend you to read one upon Wall Street by Peter Lynch.
2. The Intelligent Investor – Benjamin Graham
Now the second book that I will recommend you to read is the Intelligent Investor by Benjamin Graham. so this book the Intelligent Investor by Benjamin Graham is considered as Bible of investing and coincidentally he was also the mentor of Warren Buffett the third richest person in this world and one of the most successful investor of our time one of it says that the intelligent investor is one of the best book ever written on investing and if one of the most successful investor in this world is recommending you to read then it should be worth reading an interesting point is that Warren Buffett.
Read the intelligent investor in 1940’s and after reading this book he decided to move to Columbia University where Benjamin Crump was a teacher and there he met Benjamin cram studied under him and later also worked under I mean Come to learn investing and it is also said that born Buffett inherited the principles of value investing from from Benjamin Kraft now there are a lot of time-tested principles described in this book few of them are speculation versus investment or the concept of market mr. market or the concept of margin of safety so these principles are really important if you want to learn how to pick good companies and how and how to become an intelligent investor.
So this is the second book that I will recommend you to read now why I don’t recommend you to start with the intelligent investor and start with one up on Wall Street is that this book is really big I mean this book is around 600 pages and it requires a big commitment to read this book I never recommend any beginner to start with the intelligent investor because I know reading 600 pages is a big deal and therefore don’t start with this book but this is a must read you cannot avoid rating the intelligent investors because the concepts in this book you won’t find anywhere so starting with one up on Wall Street and let her move to the intelligent investor it it it’s a big book but you need to read it if you want to learn the concepts of value investing so the second book that I will recommend you to read is the Intelligent Investor by Benjamin Graham.
3. Common stocks and uncommon stocks – Philip Fisher
Now let’s move to the third book the third book that I would recommend you to read is common stocks and uncommon stocks by Philip Fisher this book was also published around the same time as the intelligent investor the intelligent investor was originally published in 1940s and after five or six years this book was published by Philip Fisher however the principles discussed in common stocks and uncommon to debt up the intelligent investor this is because the author Philip Fisher believes more in growth investing that is investing in thoughts companies which are growing at a fast pace and those companies which can outperform the competitor and market over the long term so if you want to learn about growth investing or how to pick growth stocks this is the book that you need to get started with moreover to where the concepts in this book is easygoing and this is also not a very big book it’s around 300 pages now one of the most important chapter in this book is what to buy and in this chapter Phil official describes 15 questions that you need to ask before investing in any stocks so if you simply Google about the 15 questions by Philip Fisher you can find all the 15 points in his checklist but I will highly recommend you to read the complete book because there are many good concepts and principles described in this book and moreover you will also learn about the philosophy of growth investing compared to investing one of the famous quote by Philip Fisher the author of this book is conservative investors sleep well this is also another book written by Philip Fisher so if you are a conservative investor and if you want to sleep well by investing in good companies and keeping it for long-term this is the book to read.so the third book that I recommend you to read is common stocks and uncommon profit by Philip Fisher.
4. Dhandho Investor – Mohnish Pabrai
so now let’s move forward to the fourth book the fourth book that I would recommend you to read is the Dhandho Investor by Mohnish Pabrai now Mohnish Pabrai is an Indian American businessman and investor and he’s the managing director of pepra investment funds his fund since inception in 1999 has given a return of over 28 percent and has consistently beat the S&P 500 index now let’s understand what is the meaning of Dhandho. Dhandho in Hindi means a business that creates wealth so basically, it means wealth creator the central concept of this book is low risk and high gain and it even makes sense it makes sense to invest in companies that have low risk and which can give you high returns in this book by Mohnish Pabrai discusses nine principles of his Dhandho investing framework and how you can use this principle to pick stocks which can give you good returns have low risk and high margin of safety. Moreover, this is also a very short book this is offered around 210 pages and you can easily read this book over and freaked. I do not want to cover all nine principles discussed in this book as it will kill the fun of reading it but this is the fourth book that I will recommend you to learn stock market investing.
5. The little book that beats the market – Joel Greenblatt
now let’s move forward to the fifth and final book this is the little book that beats the market by Joel Greenblatt as the name suggests this is a very little book itself around 180 pages and you can easily read this book over the weekend or in four or five continuous hours this book describes the basic principles of value investing that is how value investing works and how it can help you to create wealth in the book the author Joel Greenblatt also share his secret that is the magic formula that he used to consistently beat the market so in this book he describes a formula which he used to pick stocks and used that formula to pick stocks for consistently long years and by using the same formula. The same principle he was able to consistently read the market and get better returns from the index now what I want to understand you from this book is that if you have a formula or if you have a strategy that can outperform the market or that you can use to beat the market then stick to it sticking to a winning formula can give you good consistent returns in long term.
If you want to become successful in the stock market you need to make your own formula I mean it’s easier to get good returns high returns for one year or two a year but if you want to make consistent wealth from the market you need a trustable strategy so in this book he described his formula how we used return on capital and earning yield to find good companies which can outperform the market and this formula is pretty simple and straightforward you can easily understand it by reading the book so this is the fifth and final book that I would recommend you to read this is a very short book and it also teaches you the principles of value investing so let me quickly summarize the five best book to read for to learn stock market investing the first one was one upon Wall Street by Peter Lynch the second was the Intelligent Investor by Benjamin Graham the third book that I recommend you to read is common stocks an uncommon profit by fellow Fisher the fourth book that I recommend is the Dhandho Investor by Mohnish Pabrai and 5th and final book is the little book that beats the market by Joel Greenblatt .