The Best Stock Market Books for Beginners

I have often been asked what are the best stock market books for beginners. Before you go out into the stock market, you need to be informed. Become aware of different strategies and ways to invest.

I want to concentrate on an area that many investors forget about. This applies to both those starting out and those who have fallen into investing and just follow newsletters.

Educating yourself.

The seasoned investor has already spent countless hours reading and studying. If you don’t want to lose money in the market read the right books.

Newsletters will only give you so much and if you want to be successful, you need to read other literature. I think not only should you read about the stock market but also about bettering yourself.

To learn and think differently and decide to be your own boss.  I will frequently recommend a book. Check out the bookshop.

If you have time, read a book a week or a month. It will empower you. Even if it takes three months to read a book, just do it. I understand we all have jobs, families, and causes that take your time. Seriously, Prioritize some time for yourself. With just a few minutes a day, you will become more informed, feel empowered and better to deal with the ups and downs of any stock market gyration.

This leads me to my first reviews and a few books every investor should read. And, for the price of a couple of cups of coffee, you’ll actually learn something.

My advice, do not sniff at educating yourself before you invest. Have a read and choose your next purchase. It will be worth your while.

Head over to the Books page or read the reviews below…

Intelligent Investor: The Definitive Book on Value Investing – A Book of Practical Counselby Benjamin Graham

Written in 1949, it is still valid today.  If you have ever thought about investing in the stock market but are uncertain about where to start, this book is a must-read. If you fear the next financial crisis or economies crashing, this is the best book to get you off onto the right start. It will teach you to think about what matters and what is noise.

This book teaches you a way to invest in the market that doesn’t leave you at risk of losing everything.  Since publishing this book many renowned investors have hailed this book as the common sense guide. Some have used it extensively as their investment mantra. Some having followed its guidance, have become multi-billionaires like Warren Buffett. He actually called “The Intelligent Investor” the best investing book ever written.

What will you learn in this book?

  • Why intelligent investors don’t rush in. They do their analysis first.
  • Why you should pretty much ignore the market variations.
  • How to conduct the fundamental analysis of a company
  • Options on different ways to manage your portfolio. He also looks at defensive strategies that are always helpful.
  • Graham then compares various stocks which reinforces various topics of the book.
  • You will also understand why it is sometimes the cheapest stocks that are the most valuable.

Find it in the Books page

 

  “Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!”  by Robert Kiyosaki

This classic is a must-read for young investors.

Robert Kiyosaki has a view,  most of us work for money (namely the poor and middle classes), but the rich people in this world work to learn. He combines his almost autobiography with sound personal advice. This hopefully leads to becoming financially independent and wealthy

What will you learn in this book?

  • the importance of financial literacy
  • Explains your goal should be financial independence
  • You will learn that having a house can be an asset, but the mortgage repayments and upkeep turn it into a burden.
  • A real asset is what gives you cash flow into your wallet at the end of the day.
  • Learn the importance of tax planning

Find it in the Books page

 

  “The Essays of Warren Buffett: Lessons for Corporate America, Fourth Editionby Warren Buffett

Warren Buffett is considered to be modern day’s current most successful investor and is the leader of Berkshire Hathaway Inc. (BRK-A). His views that are considered important to corporate America and shareholders alike. Many investors follow his approach as it is safer than most.

He explains his philosophy of bringing in talented managers at companies Berkshire Hathaway Inc. purchases and explains how he leaves them to run their business. He encourages purchasing shares of any businesses when these stocks are trading at a discount from their inherent value. And finally, he discusses why he opposes following the crowd when it comes to investing trends.

What will you learn in this book?

  • New investors will get an understanding of the management team in a company and their responsibility to the shareholders.
  • He discusses:-
    • Financing
    • Investing
    • Alternatives to common stock
    • Mergers and acquisitions
    • Corporate Governance
      and much more

Find it in the Books page

 

Beating the Street

by Peter Lynch,

 

 

 “Learn to Earn: A Beginner’s Guide to the Basics of Investing (The Classic Guide)

by Peter Lynch

And…

 

 One Up On Wall Street: How To Use What You Already Know To Make Money In The Market (A Fireside book)” by Peter Lynch

 

Peter Lynch is one of the most successful stock market investors and hedge fund managers in the last hundred years.
He grew the Fidelity Magellan Fund from $18 million in the early 70’s to over $18 billion by 1990!
During this time, the fund enjoyed average returns of more than 29% per year.

“Beating The Street” allows the reader to peek into Lynch’s mind and thought processes in terms of deciding whether to buy or sell a stock. Lynch believes that an individual investor could exploit market opportunities better than Wall Street, and encourages investors to invest in what they know.
“Learn To Earn” is aimed at a younger audience and explains a great deal of the basics in business.
“One Up On Wall Street” discuss the advantages of self-directed investing

In all three of Lynch’s books, he has a common sense approach, which insists that individual investors, if they take the time to do their homework, can perform just as well or even better than the experts.

Find it in the Books page

 

The Book Page

Head on over to the book page and start putting your future first.  By educating yourself with these great books, you will start down the path of setting yourself up for a prosperous future.

In future posts, I’ll review other books that I think will be useful to the new investor.

 

Happy Reading

Phil