There are many things to confuse about the stock market. No matter how much experience they have, even industry insiders can't predict everything - but they are better informed than most of us.
It has been fortunate that these experts have also shared their knowledge through books, allowing the average person to gain a deeper understanding of the market. There are many books on the stock market that you can learn from, whether you want to diversify your investments, grasp the basics of buying and selling shares or are just dipping your toe into the investment world.
5 Best Books For Stock Market Beginners
In order to get started in the stock market, here are the five best books:
1. The Intelligent Investor By Benjamin Graham And Comments By Jason Zweig
A legend of the stock market, Warren Buffett himself recommends this book, explaining that it changed the way he sees the stock market. The book was written by Benjamin Graham, a successful investor who began his career in 1914 and lived through the economic crisis of the 1920s.
The book explains what Graham considers to be an intelligent investor. The book advises on diversifying your portfolio, buying and selling stocks, as well as guiding you toward investing in good companies.
2. The Little Book Of Common Sense Investing By John C. Bogle
Are you interested in learning the basics of two common investment options? In The Little Book of Common Sense Investing, you will learn how to differentiate between actively managed funds and index funds and decide which to invest your money in.
The book was written by John C. Bogle, who founded and was CEO of Vanguard, a company with assets worth over $7 trillion in 2021. As Bogle explains, index funds offer safe, low-cost investment alternatives to high-risk, costly, actively managed funds.
3. One Up On Wall Street By Peter Lynch
A mutual fund manager and investor share his knowledge of the stock market in One Up on Wall Street. How does Lynch differ from other experts? Over the course of 13 years, he led Fidelity's Magellan Fund to grow from $18 million in assets to $14 billion, making it one of the world's most successful mutual funds.
However, the book is not intended for professionals. This explains a key advantage amateur investors have over professionals on the stock market: they do not have to adhere to the same rules and regulations as professionals, allowing them to invest in stocks that have not yet proven profitable.
4. How To Make Money In Stocks By William J. O’Neil
This book's title says it all. Readers of How to Make Money in Stocks will learn how to intelligently choose, purchase, and sell stocks in order to maximize their returns and gain more wealth.
You'll learn many skills that will help you succeed in the stock market game, from how to read stock charts to identifying profitable companies to invest into knowing exactly when to cut your losses and sell.
5. Warren Buffett’s Ground Rules By Jeremy C. Miller
No one is better suited to learn investing from Warren Buffett than the master himself. In a book based on Warren Buffett's ground rules, Jemermy C. Miller delves into the pearl of great wisdom Buffett has shared his insights over the years via letters to partners of the fund that he has managed for 14 years.
Among the topics discussed are how to predict when to buy and sell stocks according to the company, the reasons young investors should invest in undervalued companies, and why tracking your stock performance obsessively will benefit you in the long run. Not enough time to keep an eye on the market? According to Buffett, index funds are a better alternative.
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