The stock market has come a long way since its inception. People are constantly looking for ways to generate higher returns on their investments. To strategize the best possible market moves, investors need to learn regularly. To know more about the stock market, you can take the guidance of a good book. Several books have been written over the years.
In this article, we recommend you some of the best books to know about the stock market and investing, voted by most investors.
1. The Warren Buffett Way
“The Warren Buffett Way” focuses on long-term investment plans. Warren Buffet is among the most admired investment gurus. The book shares the strategy behind Buffet’s profit ratio. Warren Buffet invests in businesses rather than stocks. The books provide the same insights and roadmap to master the principles of investing to their readers.
It counters many investment-related queries like how to overcome fear and emotions while investing.
The bestselling title is written by Robert G. Hagstrom. Hagstrom has tried to interpret Buffett’s approach and his rationality. “The Warren Buffett Way” describes the same as what Buffet used to preach. Readers should consider the book to add to their wishlist.
“The Warren Buffett Way ” was originally published in 1994.
2. Bulls, Bears And Other Beasts
Primarily based on the Indian stock market, “Bulls, Bears And Other Beasts” is written by Santosh Nair. Santosh is a journalist, writer, and editor. He is currently working for Moneycontrol and has been an editor at “The Economic Times and Business Standard”.
The book shares the exciting journey of Mr. Lal Chand Gupta. Santosh has mentioned every incident that happened in the Indian stock market after Liberalization. It is a must-read for Indian stock investors to learn about the country’s financial history.
The book features a fictional character named Lal Chand Gupt, who will take you on the trip to “Dalal Street”. Lal Chand has many stories to share in the world of the stock market.
“The Bulls, Bears And Other Beasts” was originally published in the year 2016.
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3. The Financial Diet
It is one of the most inspiring books written on personal finance and investment. The book is primarily written for beginners and teens. Chelsea Fagan and Lauren Hage are the authors of “The Financial Diet.” Chelsa recalls how bad she was with handling money.
The Financial Diet will give insights into investments, taxes, savings, spendings, and many other conundrums. Just as you plan a diet for your body, to stay financially healthy, you need to listen to the very financial trainer, aka Chelsea Fagan.
Amazingly, both authors did a great job defining the crucial role investing plays in one’s life.
“The Financial Diet” was originally published in the year 2018.
4. Common Stocks and Uncommon profits
This book is full of invaluable information about the stock market.
Philip Fisher is a respected and beloved investor. Philip has mentioned his investment philosophy, which has achieved the status of dogma.
It’s been more than six decades. Still, the book is the first choice of investors. Philip has penned down all his knowledge and experience in the book. Several arguments have been made that the book is now out of date. Though it may have been outdated, the core teachings by Philip Fisher are still prevalent. We indeed give an uptick to the “Common Stocks and Uncommon Profits.”
“Common Stocks and Uncommon profits” was originally published in 1957.
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5. Beating the Street
Beating the Street is written by Peter Lynch, vice-chairman of Fidelity Management and Research. Lynch has shared his investing strategies for picking stocks and mutual funds. Investors should not compare stock to lottery tickets. They should quit random picking and look for a reason or pattern behind every stock and the business.
The author has shared a step-to-step guide and how you can become an expert in investing. The author says that with in-depth research, how even a novice can compete with an expert. The book provides in-depth knowledge on investment backed by the author’s experience and extensive learning.
“Beating the Street” was originally published in 1993.
6. The Psychology of Money
The Psychology of Money is written by Morgan Housel, an ex-journalist for The Wall Street Journal. The book focuses on novice financiers. The book covers most of the elementary concepts of finance and investment.
The book contains 19 stories explaining the significant role of investing and financial management in one’s life. “The Psychology of Money” will provide you with a clear viewpoint on the thought process of acclaimed investors while investing. The author has emphasized the behavioral aspect of the investment. Morgan questions the education system. He argues about teaching mathematics for investment and personal finance when all the decisions are made practically based on one’s psychology and behavior.
“The Psychology of Money” was originally published in the year 2020.
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7. Trade Like A Stock Market Wizard
Mark Minervini is the author of the book, Trade like a stock market wizard. Minervini is considered as an “Investing Champion” who has shared his method of gaining triple-figure returns. Minervini shares his foolproof way to beat the market.
In the book, the author shares his SEPA method to skyrocket the return figures. Minervini says that a combination of self-analysis and persistence can reduce investment risk factors.
The book covers various topics such as managing losses and profits, buying/selling of stocks, IPOs, and risk management. This book will increase the worth of your bookshelf.
“Trade Like A Stock Market Wizard” was published in the year 2013.
8. Common Sense on Mutual Funds
This book is focused on the importance of money and long-term investment strategies. Jim Cramer is the author of the “Common Sense on Mutual Funds.” He is a writer and a television personality and also hosts a show called Mad Money on CNBC.
The investment community appreciates it since its release. It is the bestseller that earned the “classic” status. ConsumerAffairs has given 5-star ratings “15 business books with which help you get rich” list. The British newspaper, The Independent, said it doesn’t anticipate only the American audience and “there’ s nothing about it that doesn’t apply to the U.K. fund sector.”
“Common Sense on Mutual Funds” was published in the year 1999.
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9. The Little Book of Value Investing
It is a guide for being a value investor. Christopher Browne is the author of The Little Book of Value Investing. The book describes the core principle of value investing and how investors can skyrocket their profits in the market.
The book discusses avoiding loss, trading stocks, value investing, and long-term investing. Value investing is the long-term trading strategy of only buying underpriced assets. Value investing is considered a “risk-free yet profitable” investing strategy. Christopher Browne is the Managing Director at Tweedy, Browne Company LLC. The Little Book of Value Investing has straightforward and jargon-free content.
“The Little Book of Value Investing” was originally published in 2006.
10. Investment Strategies of Hedge Funds
Hedge funds are one of the fastest-growing investment sectors. Many consider them exotic and difficult to access. This book offers a rich learning experience by explaining hedge funds and providing quantitative and qualitative tools for investors to access these funds. The book includes a theoretical debate about each strategy, followed by examples from successful hedge fund managers. The book is written by Filippo Stefanini, a hedge fund manager.
A hedge fund is an investment strategy where fund managers and investors pool their capital in a fund. This strategy is generally practised to minimize the risks of the market, as investors earn during both uptrend and downtrend.
“Investment Strategies of Hedge Funds” was originally published in 1994.
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11. How I Made $2,000,000 in the Stock Market?
Nicolas Darvas is the author of the title. He is an investor and writer. Nicolas was initially a dancer who earned a pile of cash with his unique investment strategy.
In the title, the author has explained his investment approach and teaches how one can make money, irrespective of the market situation. It doesn’t matter if the market has positive or negative sentiments. His strategy will make you money.
The book was a national bestseller. More than 200,000 copies were sold in the first three months of the publishing date.
“How I Made $2,000,000 in the Stock Market?” was originally published in 1960, several editions have been published so far to maintain the book’s relevance.
12. Irrational Exuberance
Robert J. Shiller, an Economics Professor at Yale University, states that the exuberant behavior of the stock and real estate markets has been ended by “an economic crisis of a magnitude never seen since before “the Great Depression.” The intelligent insights, sober warnings, and hard facts Shiller presents in this book are invaluable.
Irrational Exuberance’s 2000 edition was a bestseller. It evoked Alan Greenspan’s famous 1996 use of this phrase to explain the fluctuating stock market. Analyzing the psychological, cultural, and structural factors that led to price increases not seen in any other sector. He predicted the fall of the tech stock market bubble. Shiller included real estate in his second edition (2005). He gathered evidence that housing prices were too high and could lead to a string of bankruptcies and a global recession.
“Irrational Exuberance” was published in the year 2000.
13. The Only Investment Guide You’ll Ever Need
This book is living up to its name. Andrew Tobias is an American writer and editor. The author will teach you how your money can help you make more money. The publication has published its 10th edition. The Only Investment Guide You’ll Ever Need is one of the splendidly and jargon-free writing on investment.
The books shed light on investment basics, including & outs on investing, picking stocks, avoiding loss, tax strategies, and many more. The author advises avoiding complex, arduous, and unreliable approaches to investment.
“The Only Investment Guide You’ll Ever Need” was published in 1978.
14. Fundamental Analysis for Investors
Fundamental analysis is an essential skill for investors. It allows them to evaluate a company based on its track record, sales, earnings and dividends, management, and economic outlook. This value-based approach to stock-market investing is solid and prudent, which yields handsome profits for the long-term investor.
Raghu Palat’s book can help you learn the basics of fundamental analysis. The book explains all the analytical tools for economic, industry, and company analysis with clear illustrations, including ratios, cash flow, and examples. It teaches you how to evaluate a company’s management, its products, as well as what lies behind the numbers and notes in an annual company report.
It teaches you how to calculate the intrinsic worth of a share. Becoming a successful investor is a gratifying endeavor; you get to build your wealth and increase your “freedom” by making wise investments. Ordinary people can learn how to do fundamental analysis and make significant decisions in the stock market. It’s essential to know from the best investors in the world. Warren Buffett, Peter Lynch, and Benjamin Graham have built their fortunes with fundamental analysis.
“Fundamental Analysis for Investors” was published in the year 2016.
15. How to Avoid Loss and Earn Consistently in the Stock Market?
There are hundreds of books in the market, but none of them is a panacea for the question raised by the author, “How to Avoid Loss and Earn Consistently in the Stock Market?” The book is written by Prasenjit Paul, an Indian investor, and writer. Readers can learn how to trade stock to avoid loss in the stock market. The author advises readers to invest in fundamentally strong business rather than investing in mere stocks.
The author says that because of a lack of investment literacy, many people still think a stock market is a place of gambling. Prasenjit has done a great job breaking taboos and encouraging investors to follow the best strategy to pick winning stocks.
“How to Avoid Loss and Earn Consistently in the Stock Market?” was published in 2015.
Good luck with your investments, and we hope you choose to read some of the books on our list!