Skip to main content

Translate

Best beginners books on share market


In stock market you have two ways of learning- first, go invest your money and lose it and learn from your mistake and second read the books written by successful investor and learn from their experiences. Reasonable man will select second option because it is time saving and most important money saving.

There are some basic books for the stock market. Beginners shall read them.

Warren Buffett and the Interpretation of FinancialStatements. I recommend this book only for beginners because after reading this book you get a better position to understand financial terms of balance sheet and it is very helpful to evolve common thinking about stock market and which company is best to invest?
Best beginners books on share market
Best beginners books on share market


1. The Intelligent Investor: The Definitive Book on Value Investing


Written by Benjamin Graham. You can say that it’s a holy book for stock market. Author of this book was one time mentor of Warren Buffett and the main focus of this book on value investing. The concept of value investing evolves from this. Although this book written at the very early age but its principle still applicable on today’s market. It's a best book on share market ever written. Reader may face some difficulty because of its old age language.

2. Security Analysis – Benjamin Graham

How to evaluate any company? Or how to interpret balance sheet? Or how to find undervalued stocks? How to crack intrinsic value of any share? All the related answer you will get from this book. Best book for value investor.

3. The Dhandho Investor: The Low–Risk Value Method to High Returns.


Written by Mohnish Pabrai. He is Indian-American businessman and investor. So if you want to understand his investing style, then go for it. Value investing is the core of this book and it talk about concept like “Heads, i win; tails, i don’t lose much.” And one of the most loving concept “Few Bets, Big Bets, Infrequent Bets.”

4. Warren Buffett letters (1957 to onward)
This is not a book but collection of letters which Warren Buffett written to his shareholders.
Market has so many books on Buffett philosophy but it’s totally vague until and unless you not go through Buffett’s letter. You want to understand Buffett philosophy without understanding what he said himself makes no sense. Anyone can get it from Berkshire Hathaway official website or from financial institution website absolutely free.

5. One up on wall street

Written by Peter lynch and John Rothchild. Peter lynch is legendary American stock investor  and  businessman. He is best known for his growth investing strategies. If you want know “how to analyse fundamentals of a company?” then this book must be your first choice.

Market has lots of book on stock market, but for the beginners these five books are best basic books on share market, so that you can avoid common mistakes in share market.And then you have your own choice.

"GOOD LUCK"
Labels:

Comments

Post a Comment

Please do not enter any spam link in the comment box.

Popular posts from this blog

My Investments and COVID-19

Everyone has witnessed huge market decline in the month of March when our PM Narendra Modi suddenly announced lockdown to tackle covid pandemic. Sensex stock market index reached all time high of 42273.87 in January of 2020 and from there it fallen down to below 26000 pts, nearly 40 % down. And from there it started healing. My Investments and COVID-19 Before this great fall my all investments were in undervalued stocks with very low P/E multiple, attractive earnings and exciting track record. Thanks to this quality stocks my own portfolio fall nearly 22 %. Although my 22% of capital vanished, I feel very delighted my portfolio beaten the market index(Sensex down nearly 40%) with significant points.  In the last year of your college generally you are not backed with huge capital support, and your capital is very limited. So securing capital is my first priority. Back on the track, I sold all the stocks with 22 % capital loss and secured rest of the principle capital
Post a Comment
Read more

Why some investors give stocks so high PE?

PE ratio also known as Price to Earning ratio and the most popular ratio among the investors. They use this to identify undervalued or overvalued stocks.  we already covered what is PE ratio and how you can utilize this ratio, if you want to learn about this then simply click here . The very basic logic behind PE is, If earnings low then PE high and If earning high then PE low. In general parlance if stocks PE high then it considered as overvalued and if stock comes with low PE then it considered as undervalued. Generally people avoid investing in stocks with high PE but everything comes with exceptions.  Stocks with high PE means "people and investors are willing to pay high prices for low earning stocks". Why people or investor doing so ? there can be various reason behind this, after all its a stock market and everyone have their own perception. Reasons can vary person to person. There can be various reason for paying high PE stocks and one reason can be,  Investors are ve
Post a Comment
Read more

What Warren Buffett said on fear and greed ?

What Warren Buffett said on fear and greed ? In his 1986 annual letter to Berkshire Hathaway's shareholder Buffett said very interesting thing about fear and greed. He also accepting that anticipating market is always out of his circle of competence. For me these lines are the best lines of 1986 letter. So I putting whole para as it is in front of you. please read- "What we do know, however, is that occasional outbreaks of those two super-contagious diseases, fear and greed, will forever occur in the investment community. The timing of these epidemics will be unpredictable. And the market aberrations produced by them will be equally unpredictable, both as to duration and degree. Therefore, we never try to anticipate the arrival or departure of either disease. Our goal is more modest: we simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
Post a Comment
Read more