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

Important ratios for stock analysis

Important ratios for stock analysis PE ratio:- PE ratio also known as the price to earning ratio and very famous between the investors. Investors use this ratio with other ratios or data to find out undervalued stocks. Read more Important ratios for stock analysis Earning per share:- In simple meaning it means “distribution of company’s profit between each shares” it can be used as the indicator for determining company’s profitability. It is best to use PE ratio and Earning per share comparatively. Return on Assets:- Is company using its assets effectively to generate income, yes or not? This ratio tells us the truth. This ratio gives us idea about management efficiency or capability to run company profitably. It compares company’s earnings as compare to its assets Dividend payout ratio:- It means “amount of dividends paid to stockholders relative to the amount of total net income of a company” Dividend payout ratio = Dividends / Net Income. Retention Ratio:- What c
Post a Comment
Read more

PE ratio and Its analysis

Introduction:-  PE ratio also known as Price to Earning ratio and is the most popular ratio among the investors. They use this to identify undervalued or overvalued stocks. By using it investors enhance the area of margin of safety and secure their investment. How to calculate PE ratio? PE ratio = market value per share / EPS(earning per share) Examples of calculation Assume:- Market value per share = 40 EPS (earning per share) = 12 PE ratio = 40/12 = 3.5 Market value per share = 40 Earning per share = 5 PE ratio = 40/5 = 8 Best beginners book on share market PE ratio and Its analysis How to use it? Or PE ratio using tips:- Lower PE ratio is better than higher PE ratio for selection of stock because low PE mean high earning per share and high PE mean low earning per share. And we need high earning per share. Stock/share’s PE ratio compare with other same industry’s PE ratio. If both companies market cap nearly s
Post a Comment
Read more

Kinds of Shares

Kinds of Shares Most of the investors didn’t concern in which type of share they were investing and because of that sometime they ends in wrong place. It is best for every investor to know about all type of shares because different shares are subject to different risks. Every investor can tolerate different level of risk and by knowing that they can chose according to their risk potential. Kinds of Shares The Share-capital of a company limited by shares, formed after the commencement of  the companies Act, 1956 or issued thereafter consists of two kinds of shares: Preference shares:- Such shares enjoy preferential rights like payment of dividend at a fixed rate during the life of the company, and  the return of capital on winding up of the company. Normally preference share holders do not enjoy voting rights like equity (common share) holders but they have voting right in distinguish circumstances. Read More Equity Shares (also known as ordinary shares):- It’s a v
Post a Comment
Read more