I began my investing journey more than a decade ago by reading books, books, and more books.
Books allowed me to understand the ins-and-outs of the stock market easily and showed me the steps to choose the best stocks to invest in.
For those who are just starting out in the stock market, here’s a reading list that I used to learn about stock investing and more (note: the list is by no means exhaustive).
TL;DR: 5 Books For New Investors
New to investing? Need “Dummies Guide” for beginners? Here are some books you can check out:
- The Neatest Little Guide to Stock Market Investing by Jason Kelly
- The Warren Buffett Way: Investment Strategies of the World’s Greatest Investor by Robert G. Hagstrom
- One Up On Wall Street: How To Use What You Already Know To Make Money In The Market by Peter Lynch
- Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher
- The Intelligent Investor: The Definitive Book on Value Investing by Benjamin Graham
The Neatest Little Guide to Stock Market Investing by Jason Kelly
I would recommend all investing beginners to start off with this book.
This book, with a little over 300 pages, covers the basics of why a company lists on a stock market in the first place, why stocks make great investments, steps to evaluate a stock, and most importantly, when exactly to sell your shares. It also contains lessons to learn from the investing masters, such as Warren Buffett, Philip Fisher, Peter Lynch, and a few more.
I would say The Neatest Little Guide to Stock Market Investing is an investing encyclopedia condensed into eight straightforward sections.
The Warren Buffett Way: Investment Strategies of the World’s Greatest Investor by Robert G. Hagstrom
As the title might suggest, The Warren Buffett Way looks at investing through the lens of Warren Buffett, one of the world’s richest men.
The book also contains nine case studies of Buffett’s stock purchases, including companies like The Coca-Cola Company, American Express Company, IBM and H.J. Heinz Company (now merged with Kraft Foods to form Kraft Heinz Company).
One Up On Wall Street: How To Use What You Already Know To Make Money In The Market by Peter Lynch
Author cum investor, Peter Lynch, ran the Fidelity Magellan Fund between 1977 and 1990. During those 13 years, the fund posted an annual average return of 29%. It beat the S&P 500, an index tracking 500 large corporations in the US, in 11 out of 13 years.
One Up On Wall Street helped craft my investment thesis of picking simple and great businesses.
Lynch famously categorises stocks into six buckets: slow growers, stalwarts, fast growers, cyclicals, turnarounds and asset plays. Each category has its own distinct set of characteristics.
The book also provides an investing checklist that investors can use before buying stocks.
Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher
Warren Buffett considers Philip Fisher as one of his mentors. Buffett was once quoted as saying that his investing style was 85% influenced by Benjamin Graham (more on him later) and 15% influenced by Fisher.
The “scuttlebutt” investment technique was made famous through this book. This technique involves gathering information from our day-to-day experiences. An example of scuttlebutt is visiting a shopping mall owned by a retail real estate investment trust (REIT) to see the traffic flow and how vibrant the shopping centre is.
Fisher’s book also has a 15-point checklist that investors can use.
The Intelligent Investor: The Definitive Book on Value Investing by Benjamin Graham
This investing classic was written by another of Warren Buffett’s mentor, Benjamin Graham, who is often said to be the father of value investing.
The Intelligent Investor espouses many important investing concepts. Two such theories are the introduction of Mr Market and the margin of safety.
This book is a bit on the cheem side, so I would recommend beginners to start reading this book only once they have the basic knowledge of stock market investing.
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Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. Readers should always do their own due diligence and consider their financial goals before investing in any stock.
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