The stock market is a great place to make money for the investors. But investing in stocks can be intimidating and complicating for beginners. Fortunately a lot of books, written by successful investors who have built fortunes in the stock markets, provide a good foundation for beginners. These books explain financial concepts and investing topics. With this knowledge one can actually think like an investor, get smart at investing and avoid the pitfalls and mistakes that beginners make. The following are some of the books considered to be the best to learn about investments.
- The Essays of Warren Buffett: Lessons for Corporate America
Author: Warren Buffett
Editor: Lawrence A. CunninghamWarren Buffett, popularly called the Oracle of Omaha, the chairman and CEO of Berkshire Hathaway is one of the most popular investors of our times. Every year Buffett writes a letter to his shareholders in which he explains about his decision-making process and his business practices. All the essays by Buffet to the company shareholders over the past decades have been compiled into this book by Lawrence Cunningham, a Professor of Yeshiva University. The essays have been arranged topic-wise and cover subjects like corporate governance, corporate finance and investing, mergers and acquisitions, and accounting and tax matters. The book offers invaluable advice to business students and those working in the areas of corporate finance, accounting and management.
- The Little Book of Common Sense Investing : The Only Way to Guarantee Your Fair Share of Stock Market Returns
By John C Bogle
Authored by John C. Bogle, who is the founder of the Vanguard Group, a veteran in the mutual fund industry and creator of the first index fund, this book advocates that investing is just using plain common sense. According to Bogle the simplest and most effective way to build wealth is to buy and hold a mutual fund that tracks a broad stock market index such as the S&P 500. This book popularized this strategy of investing in index funds, which carry low investing costs and also give average returns to the investors. This strategy of investing in index funds has helped millions of investors make better returns on their savings.
- Common Stocks and Uncommon Profits and Other Writing
By Philip A Fisher
The first investment book ever listed on the New York Times bestseller list and the prescribed reading book for investments at the Standard’s Graduate School of Business, Common Stocks and Uncommon Profits and Other Writing by Philip Fischer discusses investment philosophies which are studied and practiced by investors even today. According to Fischer, one of the most influential investors of all time, it takes time and effort to find the right stock to invest but once a portfolio of companies with good growth rates is found investors should purchase and hold their stocks for a long time. Fisher also lists 15 key aspects that an investor should look for while picking stocks.
- Stocks for the Long Run
By Jeremy Siegel
Jeremy Siegel, a Professor at Wharton School and University of Pennsylvania, proves with statistics that the stock market is the best place for an investor to park his money in the book Stocks for the Long Run. Analysing the stock markets from 1802, Siegel proves that the returns from stocks have been 6.5-7 percent per year after inflation over the last 200 years.
The book discusses the strategies, tools and techniques which investors can use to achieve stock returns over the long run.
- You Can Be A Stock Market Genius : Uncover the Secret Hiding Places of Stock Market
By Joel Greenblatt
In this book the author who is a successful fund manager explains how individual investors can also become stock market geniuses. What is needed is to look at those stocks which no one else Is looking. Also investors must capitalize on the special situations that happen in the lifetime of a company. Some of these special situations include spin offs, mergers, bankruptcy, restructuring, rights offering etc. The author argues that by leveraging on these opportunities individual investors can work better than professional money managers.
Do you have anything more to add? Do share us your favorite investment books in the comment section.
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