Beginner’s Must-Read: Top 5 Stock Market Books [Free PDF]
Reading books is a habit cherished by successful individuals in every field, and when it comes to investment and personal finance, the importance of reading becomes even more pronounced. Renowned figures like Warren Buffet (the Real Stock Market Ka Commando) and Bill Gates are avid readers.
This article presents a list of the best 5 highly recommended books related to investment and personal finance that every beginner should read.
1. The Psychology of Money – By Morgan Housel
In “The Psychology of Money,” Morgan Housel shares 19 insightful stories that provide valuable lessons on how to handle money wisely.
The book emphasizes that being wealthy is not solely determined by intelligence, but rather by how one behaves concerning money.
Housel stresses the significance of giving compounding sufficient time to grow. While not every investment decision may be successful, being right in just 50% of cases can still lead to substantial long-term wealth.
The author defines ultimate wealth as having the freedom to control one’s time and do as one pleases.
Download PDF Link- The Psychology of Money pdf
2. The Intelligent Investor – By Benjamin Graham
Authored by the father of value investing, Benjamin Graham, “The Intelligent Investor” is often regarded as the investment world’s bible.
This classic book is frequently referenced by legendary investor Warren Buffett in his shareholder letters and interviews.
Though some of the book’s formulas and techniques may be outdated, the principles of value investing it imparts remain highly relevant.
the Key takeaways from the Books include the importance of understanding one’s circle of competence, maintaining a margin of safety in investments, and viewing oneself as a business owner while investing in stocks.
Download Free PDF- The Intelligent Investor (pdf)
3. Coffee Can Investing – By Saurabh Mukherjee, Rakshit Ranjan, and Pranab Uniyal
“Coffee Can Investing” introduces the concept of a Coffee Can Portfolio (CCP), where investors buy and hold onto quality stocks for the long term.
The term is derived from a practice in the 1900s when people used coffee cans to safeguard their cash and valuables for extended periods.
The authors highlight crucial factors to consider before investing in any company: a market cap of over 100 crores, a company age of more than 10 years, consistent annual revenue growth of at least 10% for the past decade, and a minimum return on capital employed (ROCE) of 15%.
For financial companies, the return on equity (ROE) and loan growth are used instead of ROCE and revenue growth, respectively.
Download Free PDF – Coffee Can Investing (pdf)
4. Common Stocks and Uncommon Profits and Other Writings – By Philip A. Fisher
Considered one of the most influential investors after Benjamin Graham, Philip A. Fisher’s book “Common Stocks and Uncommon Profits” has significantly impacted Warren Buffett’s investment style.
Fisher advocates for long-term investing and suggests that the best time to sell a stock is “rarely.” He outlines 15 essential points to assess before investing, emphasizing the virtues of patience and avoiding herd mentality.
Download Free PDF- Common Stocks and Uncommon Profits and Other Writings (pdf)
5. The Zurich Axioms: The Rules of Risk and Reward Used by Generation of Swiss Bankers – By Max Gunther
In “The Zurich Axioms,” Max Gunther delves into Switzerland’s high per capita income and standard of living, attributing it to the country’s adeptness at facing and managing risk.
The book provides 12 axioms that offer valuable insights into personal finance, investing, and life, helping readers avoid behavioral mistakes and become better investors.
Download Free PDF- The Zurich Axioms (pdf)
My Final Thoughts
These top 5 5 Stock Market Books are essential guides for beginners seeking to enhance their knowledge of stock investing and personal finance.
By delving into the wisdom of experienced investors and financial experts, readers can gain valuable insights and embark on their journey toward financial success.
Happy reading!
