I think the above quote is specially made for the stock market, haha. Because those who believe they can make big bucks in the market without any proper education are fools, and they are the one who says investing is a gamble.
There are more than 85000 books on the internet on stock investing and finance management.
However, you don’t need to grasp all those books; what you need is fewer and exact information.
In the beginning, getting the right book to get started and build your knowledge about investing is even tougher.
I have read many books about investing in my career and learned many things. Still, I have faced too many problems when entering investing.
Whenever I search on Google for books on stock investing for beginners, I never get the books in a proper sequence to start from scratch.
What I will write in this post is the result of my hard work to arrange the best books in the proper sequence.
Don’t jump the sequence.
However, you need to develop a habit of reading if you want to be in the field of stock market investing, whether it is Annual Reports of a company, books, or any articles.
Reading books helps you grab great investors’ minds and apply their successful strategies.
If you can’t give time to read, you can’t be a long-term stock market investor, so PROMISE YOURSELF that you will make a habit of reading.
The world’s legendary investor Warren Buffett said that “he spends 80% of his day reading.”
Suppose you are ready to push yourself into the reading world. In that case, I suggest you buy an E-book reader, which you can carry anywhere and save you a lot of money (E-books are cheaper than physical copies).
In this way, you will save both money and time. Moreover, all the books will be in your hand in a single click.
For E-book purchases, I suggest Amazon Kindle Paperwhite. Read the specifications here.
Not only E-books but you can also store annual reports in PDF format (The best part of having a Kindle). Its reading interface is also fantastic; your eyes won’t feel hurt after long reading hours.
Now, let’s discuss some books that help you understand investing better.
Before we go and understand the jargon of stock investing, let’s understand money. So, the best book is Rich Dad, Poor Dad by Robert Kiyosaki.
This book teaches us how money works. Its content is straightforward and fantastic. The whole book is described as storytelling.
A must-read book for all youngsters.
This personal finance book is narrated as a moral story with the main focus: The difference between Assets and Liabilities.
After reading Rich Dad Poor Dad, you will better understand how money works.
Read in sequence.
This article includes the names of the books (what most websites on the internet do) and consists of the summary of every book mentioned here because I thought readers must know what they will read.
Get a coffee and then start reading this long article, which consists of 2400 words and 15 images.
Now, let’s get to the main content of this long article.
This is not any book. This is a very popular education portal by the broking house Zerodha.
The platform is free, and users don’t need an account with Zerodha to access varsity.
It contains 10 modules with multiple topics. You may choose to start from the beginning or jump to any modules that suit your interest among all modules.
Users can get basic to advanced concepts from this portal.
Zerodha Varsity is very informative and helpful for beginners who want to start trading or investing with the initial steps.
All the content is well-structured with real-life examples, which makes the learning process more interesting.
After you have gone through Zerodha Varsity, you know almost all the basics of investing and trading.
So, as I prefer long-term investing, you need to furnish your fundamentals, so I recommend this book.
Using simple language, this book covers all aspects of investing and tangential issues.
From equity investing strategies to value averaging, everything is well explained. It also explains macroeconomic factors and their impact on their business.
The publisher of this book (CNBC TV 18) puts a lot of effort into transforming the critical task of stock investing education into an enjoyable journey.
It doesn’t contain in-depth knowledge, but it is still a great and excellent read for beginners.
My Opinion:-
The price of the book is a little high but perfect for beginners. It covers everything from personal finance to IPOs.
Go and grab a copy from here.
Prasenjit Paul wrote this book in 2005.
The author made a great effort to summarise all the basics of investing in a simple and accessible language with Indian stock examples.
The author explains the strategies for Indian Stocks and how his approach makes a consistent return for him.
It also gives you a short strategy of shortlisting stocks before going into the detailed analysis.
My opinion:-
Paul doesn’t go very much beyond basics, which makes this book a must-read for beginners. It is very well illustrated with straightforward examples.
Parag Parikh writes this book in a straightforward and understanding language. He also started his mutual fund business with Parag Parikh Long Term Equity Fund.
The author simplifies investing in stocks and provides vital perspectives for a newbie who ventures into the market.
Most of the stock market investing book is written on the business & financial aspect of investing. Still, this book covers the behavioral part of investing.
“This author talks about the decision-making part of the market: deciding when to buy and sell, when to churn your portfolio, how much of the portfolio to attribute to particular stocks, etc.
My Opinion:-
This is a classic book of all time and a must-read for Indian investors, beginners, or amateurs.
Go and grab a copy from here.
Philip Fisher wrote this book in 1958, regarded as the most influential investor of all time. When most of the investors were focusing on value, he was the one who focused on growth.
Once, Warren Buffett said, ”He is 85% Benjamin Graham and 15% Philip Fisher”. Buffett also said that he is an eager reader of whatever Phil has to say.”
This book is divided into 3 parts:-
The first section of the book lists 15 points to look for in a stock, which includes what and when to buy and sell stocks.
The second section of the book lists the four dimensions of conservative investment.
The third section of the book lists the points on investment philosophy and judging the market.
My Opinion:
It will help if you repeatedly read this book to observe all the points. It is also a good read to understand the qualitative analysis.
Go and grab a copy from here.
Joel Greenblatt wrote this book in 2005.
The book “The Little Book That Still Beats The Market” is the updated version of this book with fewer additions.
Greenblatt attempts to explain investing to his kids in this book.
This book describes a “Magic Formula” for selecting companies, similar to the Ben Graham formula.
The “Magic Formula” is an approach to selecting good companies at bargain prices by running a filter based on Return On Capital (ROC) and their Earnings Yield.
He used this data and backtests it for 6 years, from 1998 to 2004, and the result showed an annual return of 30%.
My Opinion:
I recommend this book to beginners to strengthen their financial concepts of stock investing.
In addition, this book provides insights into how you can beat the market with fewer efforts using the “Magic Formula.”
Joel Greenblatt wrote this book in 2005.
The book “The Little Book That Still Beats The Market” is the updated version of this book with fewer additions.
Greenblatt attempts to explain investing to his kids in this book.
This book describes a “Magic Formula” for selecting companies, similar to the Ben Graham formula.
The “Magic Formula” is an approach to selecting good companies at bargain prices by running a filter based on Return On Capital (ROC) and their Earnings Yield.
He used this data and backtests it for 6 years, from 1998 to 2004, and the result showed an annual return of 30%.
My Opinion:
I recommend this book to beginners to strengthen their financial concepts of stock investing.
In addition, this book provides insights into how you can beat the market with fewer efforts using the “Magic Formula.”
This book is written by Peter Lynch, one of the most successful fund managers in the investing world.
“By far the best book on investing ever written.”
Robert G. Hagstrom wrote this book in 2014
