There is nothing like too much knowledge when it comes to investing. As an investor in the stock market, learning is a continuous process. Reading is one of the best ways to stay abreast with the stock market.
There are, however, so many books on the stock market and investment. A random search online for investment books will pull up thousands of results. This can make it difficult to figure which books offer the best information to an investor in the stock market.
On that note, this article introduces you to five must-read books for every investor in the stock market.
Peter Lynch’s One up on Wall Street
One up on Wall Street by Peter Lynch is one of the top books on stock investing. It is one of the most common books on stock investment. This book was written by Peter Lynch after he retired from managing high performing mutual funds in 1989. The book is highly rated in the world of stock investment. It often makes most lists of the best books on investing.
If you worry about being able to identify if a stock is a good investment or not, this is the book for you. It teaches you how to know if you should invest in a stock whether it is hyped or not. The book also teaches you how to discover stocks that are overlooked by other investors. It goes further to show you the best stock picking techniques to build your stock portfolio. The book also explores what you should do as an investor if a stock falls.
Burton Malkiel’s A Random Walk Down Wall Street
This is the book for you if you are looking for a classic book on stock investment. A Random Walk Down Wall Street written in 1973 is one of the most popular investment books.
The book takes a look at the popular stock investment myths and busts them. The book shows that changes in the stock market are often random. It also teaches investors to often focus on the present trends instead of past trading histories and trends.
Philip Fisher’s Common Stocks and Uncommon Profits
Common Stocks and Uncommon Profits approaches stock investing from the standpoint of common sense. This book offers practical advice on stock investing. Although it was written in 1958, this book is still as relevant as it was in the 1950s.
The book shows you how to determine worth stocks are worth investing in. It shows you ten investment warning signs and how to avoid them. The book also advises investors to hold stocks for long term, teaching the value of doing so over attempting to time the market.
Benjamin Graham’s The Intelligent Investor
The Intelligent Investor by Benjamin Graham is a prestigious book in the investment community. This book is highly rated by OG investment guru, Warren Buffett who says the book is one of his best books on investments.
The Intelligent Investor offers practical investment advice. It shows you how to properly value a company. It also shows you how to invest within a margin of safety and still make the maximum amount of returns. If you want to learn more easily applicable tips on stock investment, you should read this book.
Carl Richard’s The Behavior Gap
If you are looking to learn more about finance in general, this book is for you. The Behavior Gap was written from the perspective of someone with a great deal of knowledge on personal and behavioral finance and how these two are related to stock investment.
In the book, the author points out the ways investors ruin their investments. Using the term “behavior gap”, he explains that the reason investors seem to make lower returns than the amount they invested is because of their behavior. The book shows how behaviors such as greed, fear and impulsiveness cause investors to trade stocks at the wrong time. These behaviors prevent investors from reaping the maximum returns on their investments. The book also advises investors to leave their investment to compound over time instead of engaging in sporadic buying and selling.
Make a conscious effort to learn more about investing each day. Get these books and expand your knowledge on investing in the stock market.