Reading good books is the basic before you jump into investing. There are a lot of books written on the subject of stock market investing. In my career, I have read a lot of books too. So it is a bit difficult in choosing the best books. Still, here I have chosen my list of the 3 best books for the Indian stock market. Once you read them you get an idea of the stock-picking methodology for 3 legends of the industry. Not only that I will give you an idea of where you can get a ready-made list of stocks that fulfills these methodologies. So without wasting time let us see which books are most suitable for beginner investors.
My List of Best Books for the Indian Stock Market
Let me now discuss the books that I loved the most. I am sure these books will add value to your trading and investing.
#1 – Robert G. Hagstrom’s Book The Warren Buffett Way
This book gives you in-depth insights into Warren Buffet’s successful investment tactics, whether you trade stocks in person or online. If the best-selling businessman’s financial success is any indication, this book only helps investors. The fundamental ideas presented in the book support value investing in potential companies by buying their stocks. Another of Buffet’s life’s mantras is to buy stocks at a bargain. Given that it is based on actual investment performance over an extended period, this share market book is one that you cannot go wrong with.
Buffett began his investment venture in 1956 with $100 and ended it with $25 million after thirteen years. His personal net worth reached $42.9 billion by the middle of 2004, and his company’s stock was trading at $92,900 per share.
More on the Book by Warren Buffett
Warren Buffett never paid attention to the stock market during his career. According to Warren, purchasing stock in a company and purchasing the company itself are the same thing. He invests in businesses he is familiar with. In the long term, a firm should have positive potential. The three criteria that Warren Buffett uses to evaluate managers are objectivity, candour, and independent thought. Logical principles should guide management decisions. Warren Buffett collaborates with business leaders who are open with their staff and stockholders.
Warren claims that rather than looking at earnings per share, we should consider the return on equity. Always seek out businesses with strong profit margins. To truly depict a value, we should consider the owner’s revenues. When the company is being purchased is at a good discount compared to its value. Buffett claims that diversification protects against ignorance. The less risk you are likely to take, the more knowledge you have about your business. When managing the portfolio, pick the greatest company that is available. You don’t have to plunge.
Additionally, it’s not necessary to include all important industries. Hold onto the companies that perform well and you comprehend the best.
List of Stocks: Get the ready-made Warren Buffet stock screener here.
#2 – William J. O’Neil’s Book How to Make Money in Stocks
O’Neil explains his own approach to stock picking and investing. This book ought to provide comprehensive answers for novice investors. You can discover some secrets from a man who has assisted millions of investors in becoming wealthy in the past, and the author has a stock brokerage to support his knowledge in the field. This has made it one of the best books for the Indian stock market.
There isn’t much to say about this book because its success and sales speak for themselves. How to Make Money in Stocks, a best-seller on the national level provides investors with a seven-step framework for reducing risk and maximizing rewards. The book offers methods to identify profitable equities before they experience significant price increases. Additionally, it offers advice on how to invest money more wisely in mutual funds and equities, and ETFs to increase earnings. The book’s ability to help you understand the twenty-one mistakes that every investor makes is its strongest feature, though.
The book is a masterpiece that contains in-depth information regarding the stock market. The CANSLIM strategy used by Neil to become a multi-millionaire is a tried-and-true method for showing how the equity (stock) market(s) function for a passive, outside, minority investor. The concept of proprietary data and tools is the foundation of Neil’s 80/20 strategy, which states that an investor may achieve 80% success with 20% effort. The classic book’s trading recommendations are still relevant today. For investors who desire to enjoy a great degree of riches, this financial pinch is a need.
List of Stocks: Get a ready-made list of William J. O’Neil’s stocks screener here.
#3 – Peter Lynch’s Book One Up On Wall Street
With a portfolio return of 30% (on average) every year over a 13-year period, Peter Lynch, one of the most seasoned and successful fund managers ever, has an excellent track record. This book, which is regarded as a classic among trading experts, covers the preparation involved in investing as well as the author’s unique approach to stock selection. One of the best trading books ever written, it includes simple vocabulary and gives readers clear instructions on how to distinguish between long shots and duds by examining a company’s financial records.
For investors who don’t want to become the next Warren Buffet of the market, this book is a classic. The typical investor may find lots of guidance on how to manage their finances successfully. Finding “ten baggers”—stocks that increase tenfold from the first investment—is discussed. A mediocre stock portfolio will eventually become a star performer with the help of a few ten-baggers. Peter calls out to each investor and places faith in each person’s trivial ability and knowledge to demonstrate the power of common knowledge (take advantage of what you already know) to forecast the stock market in order to profit from stocks and maintain an open mind to new concepts in order to discover excellent investment opportunities.
The book is written in a very laid-back, masculine style and is full of clever observations. You’ll be compelled to finish the book as fast as possible because it is both amusing and educational. Despite being well written, this book cannot be seen as a shortcut to success. There is no secret to becoming rich, and you always need hard work to become rich.
List of Stocks: Get the ready-made Peter Lynch’s stocks screener here.
Final Thoughts on the Best Books for Indian Stock Market
Now you have read the article and got an idea of the top investing methodologies used by legends. You have also got lists of ready-made stocks to invest in. You may have a question that all these books are written by foreign investors. Still why I am calling them the best books for the Indian stock market? This is because the nature of the market is the same everywhere. Stock Markets run on cycles. You need to get an idea of where is the market in the cycle. If you can judge it correctly the same formula will be apt for your share exchange too.