7 Best Books For Stock Market That One Should Read

Investing in the stock market is more than just buying and selling of securities, it’s about understanding the underlying principles that drive this whole process. For understanding in detail about the whole concept of stock market and its investing, there are some best books for stock market out there that are beneficial for both the new investors as well as for the existing ones too! 

It’s a known fact that books are the powerhouse of knowledge, and is believed by many, and by reading one can grasp more knowledge and information about a particular thing. 

There are books for every field in the market, be for fiction, non-fiction, psychology books, and more of it, similarly, there are books for stock market too! 

These books not only help the new investor to understand the complex web of stock market from scratch, but also helps the existing investors to become more successful in their investing game and to know the crucial details and process of the stock market.

Best Books For Stock Market 

The table given below describes some of the best ones to consider regarding the stock market and what does the book teaches and how it helps the investors in seeking the right knowledge and guidance about investing in the stock market. 

Note: Above table does not represent any ranking!

1. The Intelligent Investor

As the name of the book says – The Intelligent Investor, one of the best to consider while looking for the best books for stock market. Regarded as one of the most popular books by Benjamin Graham.

The book was first published in 1949. It is a widely acclaimed and recognized book one should read on investing in the stock market. A surprising fact – the book is being written by the Mentor (Guru) of famous investor Warren Buffet. 

The book is considered as the guiding light of investing, as it explains the core concept and all the fundamentals of stock market in a brilliant way and also helps the investors in dealing with the philosophy of value investing and explains all fundamentals of the stock market in a simple and brilliant manner.

Key Insights of the book:

• Graham initiated and explained the term, Value of Investing in a detailed manner. 
• The book simply begins with explaining the basic key concepts of the stock market from the point of value investors.
• It clearly explains how an investor should choose the stocks carefully and how one should hold them.
• The book explains the topics like Investment vs Speculation, the defensive investors, stock selection, etc. 
• The book is divided into three sections, named as investment approach taken by a defensive investor, market behavior and risk management.

2. The Warren Buffett Way

The book is based on the investing style and strategies of one of the most famous investors Warren Buffett! While looking for the best books for stock market, this book, The Warren Buffett, remains one of the best classic books to look at. 

The book is written by Robert G Hagstorm, and was first published in 1984. The author has given deep insights into the investing style and how Warren Buffett thinks while investing and trading practices. Apart from this, the book has also covered all successful factors and aspects which Warren used to follow while investing. 

Key Insights of the book: 

• The book briefly describes the winning strategies and stories of Warren Buffett that will inspire and motivate the investors while investing and making an informed decision. 
• The book provides all the details about the Warren Buffett way of investing and trading in a simple manner. 
• The later editions of the book focuses on topics like behavioral finance and also explains how investors can overcome the common mistakes that prevent them from investing like him. 
• Also the author has covered the essential aspects and strategies to achieve a similar success like Buffett, which can also be used directly by investors to enhance their portfolio.

3. Rich Dad, Poor Dad

Another classic choice in the list! The book is written by Robert Kiyoskai and was first published in 1997. The book is counted among the top most considerations to look at while investing. 

The author of the book, i.e. Robert Kiyosaki is itself an entrepreneur and a great investor. Through this book he explained the myth that you don’t need to earn a high income for becoming rich, instead a great sight and thought while investing. The author through this book highlighted the importance of learning financial education, and prioritizing needs over wants. 

Key Details of the book: 

• The book distinguishes well between working for money and how money can work for an individual. 
• Apart from this, it also offers insights into financial independence and how to create wealth via numerous assets.
• The author recommends taking the calculated risks and how one should move beyond their comfort zone.
• The book also demonstrates how to use and manage debt widely. That explains the difference between good debt and bad debt. 
• This book serves as the guidance for moving from a lack of  attitude to an abundance mentality. By having a positivity and belief in one’s potential to produce riches might attract possibilities.

4. One Up On Wall Street 

The book by yet another famous inverter, i.e. Peter Lynch. The book was published in 1990. Through this book, the author, i.e. Peter Lynch, explains and provides a look at the key details of his investment style. 

The book became a great source of knowing the essential as well as the crucial details on how to choose a stock and how to invest. Also the book explains the basic and core concepts about the stock market and also the tips to make money in the market. With that also delivers the book also discusses about the dynamics of the market. 

Key Insights of the book:

• The book explains how to make the right approach for picking up a stock in the market. 
• The book also shares information about the different types of stocks and what kind of approach is required for each of them. 
• The types of stocks that are included in the book are slow growers / Sluggard, the fast growers, the turnarounds, the stalwarts, the Cyclical, and also the asset plays.
• The author introduced the term, Price-to-Earnings-Growth ratio (PEG), which helps investors in determining whether a stock is inexpensive given to its growth potential.
• The book also covers sections like how to begin with the preparation to invest, how to develop a long term investment approach, with all the basic details of investing. 

5. Stocks To Riches 

The book which is an ultimate guide for all the Indian investors. The book is itself written by a well known and experienced Indian investor named, Parag Parikh, and was first published in 2005. The author of the book is also the founder and chairman of Parag Parikh Financial Advisory Services Limited.

The book offers the relevant stock market information and the landscape analysis of the Indian stock market. It guides the investors on how stocks can be bought when the market price is way below its original value and then earn good returns. 

Key Details of the book: 

• The book is a great source to get insights in behavioral finances. 
• It helps in simplifying the concepts and offers great advice, lessons and strategies that an investor should avoid, like going towards the lost money or sunk costs, loss aversion bias, and also the other financial mistakes. 
• The book simplifies between investing in stocks and also provides key perspectives for a novice investor venturing into the market. 

6. Coffee Can Investing: The Low Risk Road To Stupendous Wealth

The book that offers investors to learn from the real life examples from the Indian stock market. The book is being written by  Pranab Uniyal, Saurabh Mukherjea, and Rakshit Ranjan, and was published in 2018. 

The book contains details about the thoughts on a low-risk and a long-term investment approach. Not only this the book presents many classic examples from the Indian stock market itself, offering investors to look and learn from the real life examples and strategies. With that the book also offers valuable inside details about investing. 

Key Insights of the book: 

• The book contains the details about concepts like investing in the usual assets like, real estate, gold, mutual funds, fixed deposits and stock markets.
• Also shares how to make a good percentage of investing annually.
• Not only this, the authors through this book share how to maintain and make a good CAGR on your investments.
• This book also offers valuable insights as well as the examples associated with it with perspectives on investment.

7. The Psychology Of Money

The book is written by Morgan Housel and was first published in 2020. The book is one of the best ones to consider by the new investors in the field. The book offers the investors with the crucial concepts related to elementary investment and business things. 

With that, it offers a close view as well as a deep understanding of the thought process of renowned investors. The book takes the reader on a journey with the author to look at the old ways people think about money and the behavioral psychology surrounding it, and also suggest ways to become more financially secure. 

Key Insights of the book:

• The author recommends staying wealthy, as opposed to getting wealthy, and to explain that he has drawn the analysis between the lives and works of Berkshire Hathaway Chairman and CEO Warren Buffett.
• Author through this book shared that the goal of having money is the freedom it awards people to make choices that make them happy. 
• The book has covered some of the most important topics in fields like finance, investing, choosing a stock and more like that. 
• Also offers investors to learn from the thoughts and strategies of the renowned investors. 

Summing Up: The Best Books For Stock Market 

Books on stock market acts like the guiding lights in the complex landscape of the market. These books provide a wide coverage of all the concepts related to stock market, like, how one should buy the best stocks, how to invest, about financial knowledge, and a lot more like that. 

By giving it a read to stock market books, a new as well as the already existing investor can seek a great understanding on the financial landscape and on strategies that are essential to have in order to sustain in the game of stock market.

Note: Want to know about, What is Ideal Trading Psychology, and the best practices for it? Visit the article once to get detailed information about it.

Thus, these books will serve as invaluable companions on this journey to achieving success in the stock market.