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Highlights
- Reading books by market veterans is one of the best ways to hone your investing skills.
- Peter Lynch’s One Up on Wall Street teaches investors easy-to-follow advice to sort companies for the long term.
- First published in 1949, The Intelligent investor still ranks high in many top investing books lists.
Investing in learning to invest can reap exponentially higher returns than directly starting to put your money on the line, without any prior knowledge. As Warren Buffett has rightly said “risk comes from not knowing what you are doing”, learning to take calculated risks, analysing companies, developing financial acumen, etc., is surely a better way than just throwing darts in the dark.
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And what’s a better way than to learn from some of the finest brains in the industry! If you are looking for some golden nuggets, life experiences and invaluable learnings from market stalwarts, we have curated a list of some of the bestsellers that you cannot afford to miss.
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The Intelligent Investor by Benjamin Graham
Who would not want to acquire the knowledge of someone who Warren Buffett calls his guru! Although this book is somewhat a heavy read for beginners, a must-read if they want to dive deep into understanding fundamental aspects of a business while stepping aside from today’s complex financial modelling on excel sheets.
With just one read, an investor can absorb the knowledge and understanding of investing from someone who is also known as the father of value investing. Although first published in 1949, the book has stood the test of time and is still finding its name in many top investing books.
2. One Up on Wall Street by Peter Lynch
Peter Lynch is one of the most successful mutual fund managers in the US and has consistently beaten the S&P 500 index with a wide margin during his stint at Fidelity Investments. In his book, he shows readers the advantages an average retail investor has over a professional fund manager.
He provides easy-to-follow advice to sort companies that are potentially in the business for a long haul and also offers guidelines on how to invest in turnaround stories, cyclical stocks and fast-growing companies.
3. The Little Book of Common Sense Investing by John C. Bogle
In this book, the founder of Vanguard Group, John Bogle, stresses upon investing is a game of common sense. He says holding onto good-quality companies for the long term is the way to make money. ‘Short-term trading in an attempt to beat the market’ is a bad idea, meaning even if you make returns in the short period, over the long term, they go to zero, especially after deducting all costs.
He was a huge proponent of index investing and there’s probably no better way to learn the art of index investing than his books. In this book, he shows some of the simple strategies which can be incorporated by beginners for curating their long-term portfolios.
Bottom Line
There are many books written on investing but very few have stood the test of time. Investors should read these books, especially those coming straight from market veterans to get a glimpse of how to think, invest and manage their risks.
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