Experts Tell Us the Best Books To Learn About Stocks
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This article showcases our top picks for the Books To Learn About Stocks. We reached out to industry leaders and experts who have contributed the suggestions within this article (they have been credited for their contributions below).
We are keen to hear your feedback on all of our content and our comment section is a moderated space to express your thoughts and feelings related (or not) to this article This list is in no particular order.
This product was recommended by Iryna Kidyba from Foxoffers
I like Benjamin Graham’s book The Intelligent Investor. She really taught me how to invest. Graham’s book The Intelligent Investor, written in 1949, revealed to the public that investing is not a dice game where chance decides everything, but a complex and fundamental science. This is a kind of Bible of the stock market. After reading the book you can understand the difference between speculation in the stock market and investment, learn about the strategies of passive and active investors. Specific examples of securities analysis for non-professional investors are also provided. I thought it was the best investment book ever written. I still think so, writes legendary investor Warren Buffett. Each chapter of the book ends with an extended commentary with a more contemporary perspective from The Wall Street Journal investment columnist Jason Zweig. I recommend it to everyone.
For those just getting into stocks and would like fundamental details into things like the difference between a bear market and a bull market, what the safest types of investments are, or even the best ways to capitalize on stock growth, then The Money Game is the perfect teaching tool. Considered to be the best book about the stock market by the New York Times, Adam Smith not only teaches readers about the intricacies of the market itself but also helps budding investors understand the importance of knowing themselves, their tolerance for risk, what drives their investment choices, as well as what success in the stock market means for them, in order to prosper in the money game.
How to Make Money in Stocks, a national bestseller, is a seven-step guide to reducing risk and maximizing rewards to establish a generation of wealth for investors. The book includes tactics for identifying successful stocks before achieving large price increases. It also offers advice on how to make smarter investments in stocks, mutual funds, and ETFs to optimize profits. But the greatest part is that the book will teach you how to avoid the twenty-one common investing blunders.
In 2000 Mark Douglas wrote the book ‘Trading in the Zone’. It is considered a classic in books on trading psychology. Douglas uncovers the underlying reasons for the lack of consistency and helps traders overcome the ingrained mental habits that cost them money. He takes on the myths of the market and exposes them one by one teaching traders to look beyond random outcomes, to understand the true realities of risk, and to be comfortable with the probabilities of market movement that govern all market speculation.
This product was recommended by Harriet Chan from CocoFinder
This is the best book to learn how to make money in stocks. It is the perfect content for beginners to study the tips and tricks associated with stocks. Here, the author explains the crucial aspects of the stocks, and the common mistakes are well highlighted to engage the readers with valuable insights. It discusses the difficulties in investments too.
Buffett’s annual reports primarily discussed the company’s performance, but he’d also include a few pages of his own wisdom: explaining how different accounting gimmicks work, or why he likes it better if the company buys back its own stock instead of issuing a dividend, etc. It’s not as dry as Graham’s book, but it’s not the most user-friendly book. (It does have more jokes, though.) If you power through it, you’ll get far better understanding of how different companies operate, how to find good deals, and how seemingly good deals can backfire. (I’ll give Buffett full credit – when he makes bad business decisions, he’s very forthright about them.)
This is a collection of several speeches and commencement addresses by Charlie Munger, Buffett’s right-hand man. Munger’s thesis is that you should discover the overlap of your areas of expertise – and that you should beware the so-called Lollapalooza Effect where multiple biases and fallacies compound to make otherwise smart people commit ridiculous mistakes. (So, in essence, the pump&dump stock frenzy you see on Reddit and other social media.) Munger is a philosopher and, I suspect, a neo-Confucian. Some of his views aren’t very popular (e.g., blaming money-chasing house-flippers for the 2008 real estate bubble), but the book is still extremely educational. Personally, I’ve analyzed my core competencies, and I know enough about myself to avoid any technology or pharmaceutical stocks (too much manipulation, too little transparency) while going after safe but underpriced companies. (Energy and retail companies when the pandemic began, etc.) When people try to chase companies they can’t even begin to fully understand… Like I said before, a little knowledge is a dangerous thing. It rarely ends well.
Thanks to Instagram, a lot of people may think that the Art of War is just a book of unusual sayings, like some ancient collection of fortune cookies. Nothing could be further from the truth: that book is an ancient psychological warfare manual, written to assist generals and commanders on the field of battle. It deals not with sword or arrows, but with human psychology. Because of that, the book is highly relevant when it comes to investing: in this Internet age, there’s a lot of misinformation, scare tactics, hired trolls who get paid $50 per FUD post (FUD = Fear, Uncertainty, and Doubt) on social media, etc. Every sufficiently big stock has some amount of psychological warfare going on – not only in social media but in financial publications as well. (No one is ever truly neutral.) This book is deceptively short but it’s not the kind of reading you can do in just a few hours. Take your time, reflect on what it says, and try to spot the same ancient patterns in the world around you.
This product was recommended by Brennan Balzi from BrennanBalzi
This is a true, up to date, beginner’s guide to stock market and trade opportunities. Lack of understanding is one of the many pitfalls for individuals starting out in the market, but Kratter explains how to easily grow your money through his guide map for trading and investment strategies. Not only is this guide comprehensive it also gives the reader insightful information about securing one’s own financial future which they can start applying today.
This product was recommended by Charmaine Allen from LuvMeKitchen
One of American billionaire investor Warren Buffets favourite quotes are Price is what you pay. Value is what you get. Author, Benjamin Graham is the godfather of the value investing philosophy. He believed that the understanding of the difference between price and value is the core principle of value investing. In layman terms if you buy undervalued assets you will always beat the market. The book Security Analysis should be on every value investor’s book list.
This product was recommended by Lynda Fairly from Numlooker
This is a step-by-step guide for overcoming the fear of investing, and finally learning how to turn $100 into $1,000,000. It’s all about frugality and investing your savings. It’s not about the markets. This book allows you to take control of your finances, make wise investment choices, hopefully, accumulate lots of money, and also enjoy life. After all, money does not make you rich. It enables you to make wealth decisions. Wealth is only created by making good decisions! This book will help you make those decisions and turn $100 into $1,000,000.