Many of the most brilliant stock market investors in the world are big time readers.
Do you think it's a coincidence that studies reveal high net worth people read more than the Average Joe?
You won't find the best knowledge in magazine, newspapers, or on TV. It's hidden within books because most people don't take the time to sit down and read a good book anymore.
Even if you already knew the importance of reading, you have to shift through hundreds of stock market trading books to find the ones worth reading.
Don't worry! We've compiled a list of the best stock market books for investors to help you improve your skills and become a better stock market investor.
Best Stock Market Investing Books
This book is our top rated book because it's perfect for the beginner stock market investor. Written by the founder and chairman of Investor's Business Daily, William O'neil provides tons of tips & strategies on how to make money in the stock market without losing your shirt.
William O’Neil’s powerful CAN SLIM® Investing System―a proven 7-step process for minimizing risk and maximizing gains―has influenced generations of investors.
It's a great stock market guide for beginners because it is much shorter than most books (around 464 pages) and is suitable for both beginner and experienced investors.
If you're looking for a complex book on investing, then I recommend The Intelligent Investor or Security Analysis. For a more down to earth basic approach, I recommend How to Make Money in Stocks for investors of all ages.
The Intelligent Investor, offers no guarantees or gimmicks but overflows with the wisdom at the core of all good portfolio management.
The hallmark of Graham's philosophy is not profit maximization but loss minimization. In this respect, The Intelligent Investor is a book for true investors, not speculators or day traders.
Warren Buffett called this book: “By far the best book on investing ever written.” It's sold well over 1 million copies and will provide you with a comprehensive education on how to find value in the stock market.
The only downside is that this book is very long. At 640 pages, you will need a large chunk of time to sit down and finish this book. It's worth the time investment and you will be able to spot stock market opportunities that others miss.
The former star manager of Fidelity's multibillion-dollar Magellan Fund, Peter Lynch reveals how he achieved his spectacular record. Writing with John Rothchild, Lynch offers easy-to-follow directions for sorting out the long shots from the no shots by reviewing a company's financial statements and by identifying which numbers really count.
He explains how to stalk tenbaggers and lays out the guidelines for investing in cyclical, turnaround, and fast-growing companies.
Lynch promises that if you ignore the ups and downs of the market and the endless speculation about interest rates, in the long term (anywhere from five to fifteen years) your portfolio will reward you.
This book contains 304 pages and shouldn't take too long to finish.
Author John Bogle is the founder of The Vanguard Group, known for providing the lowest cost funds in industry. Vanguard is also the largest asset management house in the world with over $3 trillion in total assets under management. John’s message is simple: keep costs low and invest in market indexes for the long run.
Investing is all about common sense. Owning a diversified portfolio of stocks and holding it for the long term is a winner's game. Trying to beat the stock market is theoretically a zero-sum game (for every winner, there must be a loser), and after the substantial costs of investing are deducted, it becomes a loser's game.
Common sense tells us—and history confirms—that the simplest and most efficient investment strategy is to buy and hold all of the nation's publicly held businesses at very low cost. The classic index fund that owns this market portfolio is the only investment that guarantees you with your fair share of stock market returns.
This book is a rather quick read at only 216 pages. You can finish it in a day or two.
This book is considered the “bible of value investing.” Benjamin Graham, along with David Dodd, coauthored this amazing book that covers exactly how to analyze stocks using fundamental objective analysis rather than emotional thinking or feelings.
The book's central point is that an investment should be made based upon a thorough investigation of the investment's merits – not on the market generally, or interest rates, etc. It does not promise an easy path to riches – the techniques take work.
However, Graham and Dodd's theory of focusing on safety of principal plus satisfactory return has been time-tested, and no one can question the success that Graham's disciples such as Warren Buffett have enjoyed.
This book contains 700 pages of content and is a rather long read. You can finish this book in a few days if you sit down and break up your reading into segments.
Stock Market Book Buyer's Guide – Things to Watch Out For
First off, you want to determine your background & level of investing knowledge before making a purchase. Generally, most investors fall into 3 specific categories:
Most of you reading this article are complete beginners so it makes sense to start off with the most basic stock market basic and concepts.
If you're a complete beginner, you should pick up a copy of How to Make Money in Stocks as your first step. This will provide you with a solid foundation on how the stock market works and why certain investors are so successful.
Other good reads for beginners include The Little Book of Common Sense Investing & One Up on Wall Street. There is a huge psychologic element behind investing and these 2 books will help train your mind to process information using logic instead of raw emotion.
For Intermediate Investors
If you have prior investing knowledge and/or training, then you can start with The Intelligent Investor. This book is perfect for investors who already have a solid investment background and foundation. It provides enough insight to make you see incredible stock market opportunities that others may overlook.
Another good read is How to Make Money in Stocks, too. While it's mostly for beginners, William O'neil provides an easy to follow blueprint towards stock market success. Many people, including myself, respond well to step by step outlines. If you are just like men, then you will enjoy reading this book.
For Experienced Investors
If you have a lengthy track record of stock market knowledge, then you should pick up a copy of Security Analysis by Benjamin Graham. It's widely known as the value investing bible and contains tons of complex information on determining a stock's true intrinsic value using mathematical formulas and ratios.
It will take your investment approach to the next level and give you a thorough insight on how to properly value a stock.