Though the internet is full of knowledge where you can find useful content for learning quality investing, it cant replace books. Famous investor and Vice Chairman of Berkshire Hathaway, Charlie Munger once said that he has known “no wise people who didn’t read all the time — none, zero.” So one has to read more and more to gain knowledge. This is true for investing as well and applies to every investor whether he/she is a beginner or experienced investor. Here is the list of some very useful books for learning about investing.
Best selling books for learning investing
1. The Only Three Questions That Counts by Ken Fisher
Ken Fisher is legendary investor who has became billionaire through investing. He the second investor after Warren Buffet to be in the Forbes Global Billionaire list. This book by him is a great book for learning investing. Its helpful in developing your thinking about investing. It is a great book to guide us towards better way of thinking in investing decisions. This book is not exactly for beginners, it wont be much useful to you if you don’t have basic knowledge on investment.
2. Fooled By Randomness Roles of Luck Vs Skill by by Nassim Nicholas Taleb
It’s must read for every investors. This will teach you the difference between luck and skill. Many times we make money with wrong stocks also that’s only our luck not skill. This book is based on a basic truth about humans: we are not very good at statistics, especially if we simply rely on our instincts. This book describes the butterfly effect beautifully with pseudo-real life examples.
3. Security Analysis by Benjamin Graham
The book “Security Analysis” by Benjamin Graham has often considered as the “Bible” of investing. The book was co-written by David odd. If you want to be a serious long term investor, wish to develop strong stock picking skill then this is a must read book for you.
4. The Battle for investment survival By GM Leob
This is one book that will give you the practical advice about investing right from pending habit, utilisation of leisure time, building career in investment industry, risk of inflation, short term trading, investment in house vs rental etc. Some of the chapters are really useful to retail investors like “Speculative attitude essential”, “How to invest for capital appreciation”, “What to look for in corporate reports”, “Investment and spending” and “Diversification of investments”. etc
5. You Can Be a Stock Market Genius By Joel Greenblatt
This is a wonderful book by famous fund manager Joel Greenblatt who beated Dow and gave 50% annual return for more than a decade. This book consist of practical guide to stock market. Its filled with case studies, important background information and all the tools you need to become a stock market genius. You can be a Stock Market Genius has the simplest explanation for special situations investing involving unusual securities.
6. Winning habits of Warren Buffett and George Soros by Mark Tier
Soros is a trader, Buffet is an investor, but they both have similar rules that rocks in the market. The book details 23 winning habits of both Soros and Buffet. This book can take you a step closer in being successful in investing trading. Beginners will love the book’s approach detailing a step-by-step mental check list to go through when making investment decisions.
7. One Up On Wall Street by Peter Lynch
I think this is one of the best books in developing the art part of stock picking. Its Bhagwadgita of investment for lay investors who do not have too much background in analysing stocks in detail. What I have found fascinating in this book is that most of the situations and examples which Lynch puts forward in the book almost always play out in the markets. Another good book for beginners by Peter Lynch is Learn to Earn: A Beginner’s Guide to the Basics of Investing. “Beating the Street” by Peter Lynch is a another great book about ‘GROWTH STOCK’ which is worth reading. He has explained in detail about his experience in identifying the growth stock, developing the story about the company and following the same
8.Five Principles for Successful Stock Investing
Combined with Peter Lynch’s One Up on Wall Street, this book makes for a fantastic combination to apply practical principles to successful stock investing. If you want a practical do-it-yourself, step by step tutorial on how to analyse/research a stock in-depth this is the best for it.
9. How I made 2 million in market by Nicholas Darvas
This book doesn’t talks just about fundamental analysis. It takes some technical approach as well. Techno-fundamental approach. Its a nice book to learn the concept of emerging themes and market tops and bottoms etc. for the best entry and exit.
10. The Intelligent Investor by Benjamin Graham
Benjamin Graham is considered as the father of value investing. He is the mentor and Guru of Warren Buffet. Warren Buffett believes The Intelligent Investor is “by far the best book about investing ever written,” Chapter 20, which is titled “‘Margin of Safety’ as the Central Concept of Investment,” should be required reading for all investors.
This was my list of some of the top books one should for learning investment. If you have read any other good book on investing, then do let us know in comments.
Abhishek is an Engineer MBA in Finance and Certified Research Analyst. He is an active trader and investor in the stock market since 2010. Follower of the philosophies of Warren Buffet and Peter Lynch in investing and trend following in trading.