Investing in stocks doesn’t require a degree in finance or accounting. Buying stocks is simply buying a share in a business. Using basic math and common sense, anyone can invest in stocks. The best way to get started is to read books on stock investing. Below are four books which go over the basics of analyzing businesses and deciding what stocks to buy. Best of all, they are timeless and can be applied to any stock market in the world.
The Intelligent Investor – Benjamin Graham
This one is a classic. It guides readers on how to build a sustainable long term practice of investing by reducing losses and maximizing gains. More importantly, it teaches you how to train your mind and not be emotional while investing.
One Up On Wall Street: How to Use What You Already Know to Make Money in the Market – Peter Lynch
Peter Lynch is a legendary mutual fund manager. In this book, he goes over the advantages a common investor has over professionals. The book shows readers how to make investment decisions based on businesses they encounter during their everyday lives.
Common Stocks and Uncommon Profits – Philip A. Fisher
The book, first published in 1958 has some timeless lessons for investors just getting started. It goes into details of DOs and DONTs for investors, what to look for in a company before buying stock and developing an investment philosophy.
Value Investing and Behavioral Finance: Insights into Indian Stock Market Realities – Parag Parikh
Parag Parikh is one of the most respected investors in India. This book has a lot of India specific examples and dwells into the relationship between human emotions and investing. This is a great read for those looking to develop strategies for value and contrarian investing.