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Highlights
- Investors can easily quicken their learning curve by leveraging the experience and knowledge of other successful investors through reading their books.
- Reading books and learning from top investors can also help someone dodge a few major mistakes which could easily push them a few years back.
- One up on Wall Street, The Warren Buffett Way are some of the must-reads for new investors.
For novice traders, diving into the world of investment could be challenging and is often a daunting task. In a field where a careful analysis of tons of information is required, including some risk management tactics and robust psychological resilience, one may easily be overwhelmed with the kind of hard work required to be successful in the stock market.
Image Source: Lubos Houska from Pixabay
However, investors can easily quicken their learning curve by leveraging the experience and knowledge of other successful investors who have made it big and might have already gone through all those countless mistakes which you can avoid. This is where books authored by them come into the picture. Let us have a look at five must-read books on the stock market that can kick-start your investing career.
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- One Up On Wall Street
This book by one of the most successful fund managers Peter Lynch has made it to numerous must-read books lists. With an annual average return of around 30% over more than a decade, Peter Lynch knows his game.
The book starts with the importance of basics for beginners and moves on to explain some of the stocks picking approaches of Peter Lynch. He also categorises stocks into 6 different types and how to approach each.
- The Intelligent Investor
Also known as the Bible of the stock market, The Intelligent Investor by Warren Buffett’s guru Ben Graham is a no-brainer for value investors. The book deep dives into fundamentals of a business to find quality businesses but at a bargain.
One of the main concepts explained here and which is widely adopted now is “the margin of safety”, which is solely a risk measurement concept. One little drawback could be, the book is not for beginners and they might have a hard time going through it.
- The Warren Buffett Way
Finally, the list couldn’t be completed without including the book that tries to explain the investment philosophy of arguably the greatest investor in the world, Warren Buffett. This is not a biography, yet Robert Hagstorm did a fantastic job in covering how long-term investors such as Buffett himself thinks.
To make the book more practical, he also analysed Buffett’s recent acquisitions of H.J. Heinz and his investment in IBM. The latest print is in the third edition and concludes that holding on to right investments for a long time is a far greater challenge than just picking right stocks for long-term success.
Bottom Line
Reading minds of some of the greatest and successful investors could surely help investors to quicken the learning curve and avoid numerous mistakes which have already been made by them. The above-mentioned list is just a few of some of the most popular books by legendary investors/fund managers.
