Stock Markets Require Adequate Knowledge Before Investing
The stock markets can provide handsome returns, but you should be aware of the fundamentals. You must understand the fundamentals of stock markets. Also, know the factors to consider before buying or selling stocks. Investors can gather knowledge from various platforms, and you can read books written by investment gurus that can help you. Here is a list of the best books that can help readers understand the fundamentals of stock investing and help to make the best investment decisions.
Must Read Books on Stock Market and Investing
One Up On Wall Street – by Peter Lynch
Are you willing to gain knowledge and improve your stock market m=investments? You can refer to this book from Peter Lynch, who has been a successful fund manager for over 30 years. It is an excellent storehouse of information for beginners in the stock market. It will help the reader know about the approach to be taken for long-term investments and the approach to buying different stocks.
The book showcases how any investor can have an advantage over the professionals and ensure adequate returns on their investments. For any investor, it is essential to select the stocks where they must invest. The book also provides sufficient information about assets in the money market.
The Intelligent Investor - by Benjamin Graham
If you are looking for stock market books to know the fundamentals, you must get hold of this one. The book was written by Benjamin Graham – known to be the mentor of Warren Buffett. It can help the reader learn about the strategies that will help gain slowly through investments in the stock markets.
The fundamental principles are aptly covered in the book. The readers are protected from making any expensive mistakes, and they can build long-term approaches too. The author mentions strategies for investing successfully without serious risks. It also deals with the principles explained clearly by using examples for more clarity.
Common Stocks and Uncommon Profits and Other Writings - by Philip A. Fisher
The author is counted among the most influential investors of all time. He had introduced his principles around four decades ago but are still regarded as gospel among investors. The book discusses how growth stocks help in achieving considerable gains in the long term.
It also discusses the philosophies that govern what stocks to buy, where to buy them and when they can be sold. The author mentions fifteen points that investors must look for in any stock. The updated paperback edition also covers the perspectives put forward by his son, Ken Fisher, an investment guru.
It is priced at Rs. 975 on Amazon.
Fundamental Analysis for Investors - by Raghu Palat
This book by Raghu Palat stresses that before investing, you must know about the company in general. Assess the financial state of the company appropriately before investing. Investors can read this book to understand how the assessment can be done. You will also know the reasons why this assessment is needed.
The book will also teach you the tactics to know more about business operations and the possible returns. It also teaches about how to spot any discrepancies in financial records. The reader understands a value-based approach that can provide good returns in the long term.
The paperback edition is priced at Rs. 329 on Amazon.
How to Make Money in Stocks: A Winning System in Good Times and Bad - by William J. O'Neil
The next book on our list covers the investment measures learn by the author through his analysis of financial stocks. He discusses seven steps to invest successfully and make profits too. He mentions a CAN SLIM approach.
The author also discusses exchange-traded funds and mutual funds. You can also gain knowledge about when to invest and when to cut losses. It also teaches you about various aspects like demand and supply, growth rate, etc.
The paperback edition is priced at Rs. 1,558 on Amazon.
The Warren Buffett Way - by Bill Miller
The book provides insights into Warren Buffet's strategies in investing. The author narrates the principles that you must imbibe to achieve the success of the astronomical levels of Warren Buffett. It also discusses the basic principles followed by Buffett when investing.
He does not use much jargon and clearly explains to anyone willing to learn more about investing correctly. The book covers the numerous achievements and investments over the last decade. The strategies that made the maestro a winner are explicitly described in the book.
The paperback edition is priced at Rs. 1,384.90 on Amazon.
Value Investing and Behavioral Finance - by Parag Parikh
Can you choose to invest in a value stock that is low-priced but has immense potential? You can learn it from this book, and investors must identify great companies with good top management. The book discusses failed IPOs from the promoters and investors perspectives.
Behavioural finance is the best antidote to anxiety and helps to make better investment decisions. The reader can better identify any pitfalls in growth stocks, commodities, PSUs, etc. The reader can also learn how behavioural biases can affect investment decisions.
It is priced at Rs. 682 on Flipkart.
The Art of Value Investing: How the World's Best Investors Beat the Market - by John Heins and Whitney Tilson
The book provides good insights related to stock markets for both novices and seasoned investors. The language of the book is lucid and discusses investment styles and how they evolved. It deals with risk modelling, short and long-term investments, etc. It answers several queries from equity managers through interviews conducted with successful value investors.
The hardcover edition is priced at Rs. 2,871 on Amazon.
Bonus Tips to Win the Stock Market Game
- Have achievable goals. Assess your financial needs and set achievable goals.
- Conduct due diligence. Get aware of investment fundamentals. Undertake technical analysis that can help you to book profits.
- Focus on the company. Always analyse the entire company operations, including the products offered, overall sales and consistency, the competition and ability to address changing business environment, etc.
- Go long term. Assess whether you can hold on to a stock for the long term. Else, do not invest in it.
- Consistent plans. Make plans way ahead of why you must buy or sell a stock.
If you are a beginner with little or no idea about the stock markets then the above-mentioned books will help you. These books simplified all the basic knowledge needed to be a Smart Investor, even if you don’t have any knowledge earlier. So, If you are a beginner or thinking to start investing or trading in the stock market, these books will minimize your losses.