Books are considered as the best friends of students in a real sense, and it is said that they are also the best companions of students. They play a significant role in Student’s life. Books give plenty of joy to students, and they learn a lot of things from books. They take them into a unique world of imagination and improve their standard of living.
Since stock market is a place where nobody teaches you the right way in which you can invest in this market. so the only best option left with a beginner to know the abcd of stock market is to read books. There are many great and successful investors like warren buffet who read a lot of books even in this age to make them more precise and successful in this market.
so here is the list of five books which a beginner can read and increase his knowledge for investing in this market
1. LEARN TO EARN BY PETER LYNCH
Learn to earn book by Peter Lynch is the best and first book recommended for beginners to learn Stock Market investing. In this book peter lynch has described stock market in a very simple way. He has also explained the need, use and value of stock markets in this world.
Learn to earn book is written by Peter Lynch. He is America’s number-one money manager. He was portfolio manager of Fidelity Magellan Fund, which was best performing fund in the world under his leadership from May 1977 to May 1990.
A simple figure for you to trust Peter Lynch. One thousand dollars invested in Magellan fund in 1977 was worth $28000 when he left Magellan on May 31, 1990.
According to me it’s a must read book for beginners that will provide them the best basic knowledge of stock market.
2. FUNDAMENTAL ANALYSIS FOR DUMMIES BY MATT KRANTZ
This is an perfect book for those who are new in the stock market and want to get good knowledge of long term investing and fundamental analysis. This book can give you a deep knowledge of how to read any company balance sheet, profit and loss statement , cash flow statement and many more which are very much necessary if you are thinking to invest in a company for a long period of time.
The lessons learnt in this book can do wonders in your stock market investing career. After all i will highly recommend you to read this book if you are a long term investor.
3. ONE UP ON WALL STREET BY PETER LYNCH
one more book by peter lynch. After reading learn to earn you can go for this book. This book will teach you that how you can find companies that can give you multibagger returns just by just by observing products of companies that you are using in your day to day life. Peter lynch has found many multibaggers in his life by this method and applying some fundamental analysis to this. I admire peter lynch a lot as he is a master of investing and his books are real gems for beginners in stock market.
So buy one from amazon and start reading it today
4. THE DHANDHO INVESTOR BY MONISH PABRAI
It is an comprehensive value investing framework for the individual investor in a straightforward and accessible manner, The Dhandho Investor lays out the powerful framework of value investing. If you don’t know This book will also give you information about how some Indians made great business empires by just following dhandho model and how a investor can learn from these stories to find great businesses.
Dhandho (pronounced dhun-doe), literally translated, means “endeavors that create wealth.” This book will also give you a great information about the Cash flow valuation method.
The author of this book is a CEO of Pabrai fund and manages assests over 400 million dollars.
5. VALUE INVESTING AND BEHAVIORAL FINANCE
This book will teach you smart and successful way of investing calls thorough understanding of behavioral finance not just market sentiments, crowd behavior or company performance. This book studies investing and behavioral trends in Indian capital markets, and shows the follies of collective behavioral biases and their impact on investor decisions and returns.
Investing is all about controlling your emotions and holding particular assets for a long period of time without getting distracted by the noise of market. This book can be act like a life changer for you in the field of investing if you are a kind of person who does not have any control on his emotions. It is a must read book for all stock market beginners.
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