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|
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.