Though you can learn a lot about the stock market through the Internet by watching videos on Youtube, reading blogs, taking some online courses, but reading books on stock market can provide you deep historical analysis and some past knowledge and experiences about the stock market.
In this blog I have mentioned 10 best books on stock market according to me which you should definitely try to give a read to increase your knowledge.
- The intelligent investor
- One up on wall street
- Beating the street
- Common stocks and uncommon profits
- The Warren Buffet way
- Stocks for the long run
- How to make money in stocks
- The little book that still beats the market
- Some Indian Books on stock market
- Books on stock market recommendation by Warren Buffet
- Conclusion
- Q&A
The Intelligent Investor – By Benjamin Graham
This book is also known as the Bible of the stock market.
This book is written by Benjamin Graham and was published in 1949. Benjamin Graham is also known as the father of “value investing”. He was also the mentor of Warren Buffet– the greatest investor of all time.
This book will teach you about value investing, how you can find stocks for long term portfolio, and keep your portfolio safe.
This book has three parts or I can say this book teaches you three main concepts. The first one is an investing approach for a defensive investor. Second is the market approach and the third one is risk management.
This is an evergreen classic book on stock market and you should definitely read it.
One Up on Wall Street – By Peter Lynch
The author of this book “One up on wall street”, Peter Lynch was described as a legend is investing.
He has generated a return of 29.2% annually between 1977 and 1900 by being a manager of the Magellan Fund at Fidelity Investments, which was more than double the return on the S&P 500 stock market index of the US. His 13-year tenure took the funds to swell from 18 million dollars to 14 billion dollars.
In this book on stock market, Lynch has talked about all the basics and it is a must-read for all the beginners planning to invest in the stock market. He has also talked about the long term investment approach in the book.
Beating the Street – By Peter Lynch
This is another classic book on stock market by Peter Lynch which was published in 1994. In this book, he has once again talked about long term investment opportunities for individual investors who are looking for acquiring big success in the stock market.
As per the book, investing in stock market should not be done like a lottery game. In this book, Lynch explains the fundamentals that one should look to pick stocks.
According to him you do not require a hand-holding to make a great portfolio. However, you can do so yourself once you learned the skills of investing.
Common Stocks and Uncommon Profits – By Philip A. Fisher
This book on stock market was first published in 1958. Philip A.Fisher is among the most influential investors of all time and is known as one of the pioneers of modern investing theory.
In this book he has talked about growth potential strategy which he uses to find growth stocks that give huge gains if held for a long time.
The Warren Buffet Way – By Robert G. Hagstrom
This book on stock market was first published in 2013. Warren Buffet is the greatest investor of all time. The writer of this book Robert G. Hagstrom is known as one of the best authors of investment books.
It is one of the best books on stock market that you should read to learn the investing strategy of Warren Buffet. Robert has talked in simple language so that a beginner in the stock market can also easily understand value investing and how Warren Buffet invests.
Stocks for Long Run – By Jeremy J. Siegel
Jeremy is a professor of finance at the Warton School of the University of Pennsylvania. He is courted by nearly every Wall Street firm as a consultant and lecturer.
This a good book for practical advice on investment. The author has talked about how you can build wealth through stocks, stock fluctuations in the short run, economic environment of investing.
In the latest edition of this book i.e. the fifth edition, Jeremy has also talked about the financial crises of 2008 and how it had altered the financial markets and the future of stock returns.
It is a must read for anyone who wants to fully understand the forces that move share markets today.
How to Make Money in Stocks – By William J.O’Neil
William J.O’Neil, the writer of this book is an entrepreneur, writer and stockbroker who founded the brokerage firm William O’Neil & Co. Inc and the business newspaper “Investor’s Business Daily”.
In this book he has given a seven-step guide for minimizing risk and maximizing gains. He has also given 21 most common investor mistakes. So, by reading this book you can avoid these mistakes while investing.
In this book you will get to know about the great strategies. These strategies are proven techniques to identify winning stocks. It is based on the 100 years of study on stock market winners.
The Little Book that Still Beats the Market – By Joel Greenlat
Joel Greenblatt is an American investor and writer. He is the founder of Gotham Funds which he runs along with his partner Robert Goldstein. This fund achieved 40% annualized returns for the twenty years after its founding in 1985.
In this book, he has talked about how you can outperform the market averages by buying stocks of an above-average company at below-average prices.
He has also explained a step by step journey so that you can learn the principles of value investing in a plain language with some humor.
Some Indian Books on Stock Market
Being an Indian, I would now recommend you some books on the stock market written by Indian writers which you should definitely read if you are an India but it did not mean that you should not read the above-mentioned books by foreign authors. You should definitely read them too as the concepts and techniques written by them are also valid in the Indian stock market.
Investing in India – By Rahul Sarogi
Rahul Saraogi was a managing director at Atyant Capital. Rahul has over 14 years of experience in Indian financial markets. He has spent the last 14 years of his career in researching, investing, and understanding Indian stock markets.
In this book he has explained the five criteria to separate out value stocks. He also explained the role of government, politics to influence the market.
Stocks to Riches – By Parag Parikh
The author of this book, Parag Parikh was an entrepreneur, value investor, and author. He was the CEO and chairman of Parag Parikh Financial Advisory Services.
He believed that the market has a mind of its own which can be converted into a normal language using techniques.
This book is written in a very simple language. In this book, Parikh explained the entire truth of the Indian share market. He has also talked about the mistakes that an investor can make as a beginner in the stock market.
Books on Stock Market recommended by Warren Buffet
The above books on stock market were all my recommendations. Now, here is a bonus for you, I am attaching below the 6 books recommendation by Warren Buffet:
- Security Analysis by Benjamin Graham and David L. Dodd
- Stress test: Reflections on Financial Crises by Tim Geithner
- The Essays of Warren Buffet by Warren Buffet
- Jack: Straight from the Gut by Jack Welch
- The Outsiders by William Thorndike Jr.
- The clash of the Cultures by John Bogle
Conclusion
Out of the above 10 books on the stock market recommended by me, you should definitely read some. Reading these books would definitely have a positive impact on your investment strategies in the stock market.
They would help you to learn the skills needed to develop a good portfolio.
In most of the book, authors have talked about long term investing, even the greatest investors like Warren Buffet focuses on long term investment.
I would also recommend you to maximum add stocks in your portfolio for long term investment, short term investment can give you good returns but not like long term investments and also they are more risky.
You can follow if you want my investing strategy of allocating 70% capital for long term investments and 30% capital for short term investments.
For investing for the long term you must learn about Fundamental analysis, you can read my blog on Fundamental Analysis and for short term trading you must learn about technical analysis, you can read my blog on Technical Analysis.
Q&A
Ans. No, it is not outdated at all, only the first few chapters are irrelevant for the Indian stock market and you can skip them.
However, you should definitely read this book, the author of this book Benjamin Franklin has talked about value investing which can still be used today. Even the greatest investor, Warren buffet uses this technique for his investments.
I am a student currently pursuing B-tech in electrical engineering from Delhi Technological university.
