The books you should read to learn how to invest in the stock market
Before investing your money in the stock market, you should have a few books on finance to build a solid financial culture. Here are the essentials!
You can’t invent the stock market and investing is not a natural process. It is therefore better to prepare the ground before setting foot on the financial markets.
Of course, there are many articles on how to get started in the stock market, as well as many files, guides, videos, simulators, stock analyses, etc. All these elements that you can find in the specialized press or even in the educational support provided by your broker can help you to make your first steps in the stock market.
But it will also be useful to consult some reference books on investment.
You will discover in the list below the books that we believe it is necessary to have read before investing in order to fully understand the workings of the stock market, to have an idea of your investment strategy, and to be serene and determined when you start.
1. Benjamin Graham’s Smart Investor
Benjamin Graham is undoubtedly the father of value investing. An entire generation of investors has taken his ideas on stock analysis as a reference, including his most famous student: Warren Buffett. Published in 1949, “The Intelligent Investor” is a much easier read than “The Interpretation of Financial Statements” written by Graham in 1934. This book is probably the most quoted but least-read investment book. “The Intelligent Investor” will not tell you how to pick stocks, but it does teach sound, time-honored principles that any investor can use. Moreover, one testimonial from Warren Buffett convinces us to read it: “By far the best book on investing that has been written”.
2. Philip Fisher’s Ordinary Shares and Extraordinary Profits
Another pioneer in the world of financial analysis, Philip Fisher has had a great influence on modern investment theory. The basic idea of analyzing a stock based on growth potential is widely attributed to Fisher. “Ordinary Stocks and Extraordinary Profits” teaches investors how to analyze the quality of a company and its ability to generate profits. First published in the 1950s, Fisher’s lessons are still applicable over 50 years later.
3. What if you knew enough to win in the stock market by Peter Lynch
Peter Lynch made a name for himself in the 1980s as manager of the Fidelity Magellan fund, known for its extraordinary performance. “One Up On Wall Street” champions the benefits of self-directed investing. Lynch’s book follows his common sense approach, which insists that individual investors if they took the time to fulfill their obligations, could perform as well as or better than the experts.
4. Warren Buffet: the official biography, Alice Schroeder’s snowball effect
Stock market professionals have a boundless admiration for the genius investor that is Warren Buffet. It is therefore difficult to establish a list of books on finance without mentioning the official biography of the famous American investor. The first authorized biography of Warren Buffett was written by Alice Schroeder, an economics author, and former insurance analyst at JP Morgan, in collaboration with Warren Buffett himself. Thanks to thousands of hours spent with the famous investor, Alice Shroeder, who also had the agreement of the Oracle of Omaha to interview his relatives, friends, and associates, draws a complete portrait of this investment legend: career, family, investment principles, and stock picking advice. The book gives a relatively complete overview of the ideas and principles on which Warren Buffet built his fortune and traces one of the most important success stories in contemporary America.
Despite its 900 pages, one is not bored reading this book, which the Wall Street Journal described as “lengthy and encyclopedic“. The New York Times prefers to emphasize the fact that “The Snowball tells a fascinating story”. Released in 2010, Warren Buffet’s official biography was voted the best book of the year by The Washington Post, People, Financial Times, BusinessWeek, and Publishers Weekly and was named one of the top five books in the essay category by Time.
5. The Little Book of Common Sense Investing by John C. Bogle
This thorough and insightful yet easy-to-read book by the renowned American investor and founder of the famous Vanguard investment management company, John C. Bogle, flies in the face of much conventional wisdom. This book is for the savvy investor who wants to perfect his or her investments and open up new horizons. Highly recommended by the Chairman (Warren Buffett) and Vice Chairman (Charlie Munger) of Berkshire Hathaway, this book has found favor with the greatest investors of all time. For this reason alone, it is urgent to get a copy. A must-read, especially for its analysis of the financial markets and its well-documented study of index management and ETFs.
6. The Stock Market for Dummies by Gérard Horny
The cult collection “For Dummies” is far from being reserved for dummies. Firstly, because one is not a dummy when one knows one’s ignorance and wants to remedy it, and secondly because reminding the basics, even to the most knowledgeable, is never superfluous. All the more so because the principles set out are far from boring. A book for those who are new to the stock market, but not only, with a complete overview of the stock market: what is it? What is it for? How does it work? What are the TOP financial markets? How to do stock-picking? How to place a stock market order? What are the different assets that can be traded on the stock market? Through which investments should I invest? So many questions that many savers ask themselves, who would gain a lot from mastering the subject before taking their first steps on the stock markets?
7 . Stock market: only the best win: Peter Seilern’s 10 golden rules for long-term returns with minimal risk
Peter Seilern believes that “Quality Growth” investing is the best choice an investor can make to benefit from an appreciation in the value of his stock portfolio over time. This book focuses on how to select the best stocks to create an optimal portfolio that enjoys quality growth over time while limiting risk. The author will share with you his secrets for finding companies with strong and stable growth prospects that will allow you to outperform the markets with above-average returns.