You may be wondering what are the Best Stock Market Books for Beginners to learn everything about stock market investing. Stop wondering and start reading the post.
Nobody wants to die poor. But why are there only 2143 billionaires out of the 7 billion population? Why are most of the people still poor when they are on the death bed? What makes billionaires stand out and what sets others apart?
Poor financial management, irrational decisions, and lack of patience could be some of the reasons. Today’s billionaires are not born rich nor they made money overnight. So how did they make it?
The books below might answer the question. However, these books may not help you become a billionaire but they will surely help you learn ways to become financially free.
Stock Market Books for Beginners
Here are the 15 best stock market books for beginners
1. The Intelligent Investor
Who can deny advice from the greatest investor of the twentieth century, and if it is Benjamin Graham, no one can ignore the timeless wisdom that he is going to impart.
Coming from poverty, he became an excellent student at Columbia and started his investing career with a job on Wall Street upon graduation. He wrote down his investing principles in 1949 inside The Intelligent Investor, which Warren Buffett calls the best book on investing ever written.
Though it was first published in 1949, much of its original wisdom holds true, from the importance of value investing and loss minimization to resisting emotional decision-making when navigating the financial markets.
However, the newest edition has been updated with data on modern markets, as well as commentary and footnotes by financial journalist Jason Zweig. It has sold more than a million copies worldwide and has been endorsed by various industry experts and publications, including Barron’s.
However, a word of caution for beginners who pick this book, please do your homework on the primary lessons of investing before you graduate on to Graham. There is a possibility that the book might put you off to sleep if you are a layman with no knowledge. This is a must read book among the other stock market books for beginners.
2. Irrational Exuberance
Have you ever wondered how stock market bubbles occur? How irrational euphoria lures in the public and ‘forces’ people to jump into speculative ventures despite knowingthat the market(s) is/are overvalued? How fortunes are created and destroyed on the back of a “new era” narrative?
If yes, you would benefit tremendously from adding Robert J. Shiller’s Irrational Exuberance to your bookshelf. In this awesome book, Robert outlines the many recurring factors and themes that have paved the way for basically all financial bubbles.
The book is a careful study, drawing widely from the research and historical evidence to come to the conclusion that the enormous stock market boom that started around 1982 and picked up incredible speed after 1995 was a speculative bubble, not grounded in sensible economic fundamentals.
Shiller points out that the real estate bubble is similar to the stock market bubble that preceded it, and warns that “Significant (further) rises in these markets could lead, eventually, to even more significant declines.” Shiller has proven he is correct, and we are very well aware of this fact.
3. Stock Investing For Dummies
Stock Investing For Dummies covers all the proven tactics and strategies for picking the right stocks. A newbie is sure to be lost in the ever-changing, fast-paced finance. Packed with savvy tips on today’s best investment opportunities, this book provides a down-to-earth, straightforward approach to making money on the market without the fancy lingo.
The book begins with the basic information on ETFs, a safer way to be more diversified in the stock market, new rules, exchanges, and investment vehicles; and much more.
It also features tips and tricks on how to tell when a stock is on the verge of declining or increasing, how to protect yourself from fraud, and common challenges that every investor must go through, along with resources and financial ratios.
Thus, there is no better book for teaching the basics than Stock Investing for Dummies. The book is filled with real-life examples that allow you to grow your stock with a definite investment plan. A free tip for beginners, invest in this book rather than spending your time in tutorials.
4. One Up On Wall Street
One Up On Wall Street is one of the best books published on stock market investing and an all-time best seller. The book is filled with witty remarks and is written in an extremely easy-go-hunky manner.
It talks about finding the ten baggers – the stocks that appreciate tenfold from the initial investment, and eventually, a few ten baggers will turn an average stock portfolio into a star performer.
Peter calls out to each investor and puts faith in each individual’s inane ability and knowledge to show the power of common knowledge to predict the stock market to make money in stocks and keep an open mind to new ideas to uncover great investment opportunities. The book is entertaining and informative, and you’ll be compelled to finish the book as soon as possible.
5. A Random Walk Down Wall Street
A Random Walk Down Wall Street is a classic guide that blends history, economics, market theory, and behavioral finance to offer practical and actionable advice for investing and achieving financial freedom.
Malkiel’s central message is abundantly clear – begin a consistent savings plan as early as possible and invest the core of your portfolio in low-cost, broad-based index funds.
The book advises in a lucid way and does a great job of combining the theoretical and the practical of the stock market funds. Malkiel takes the history of Wall Street and casts a speculative eye, in turn, making each and every bubble very insightful.
Malkiel’s approach is a mediocre one where he does not bombard the readers with complicated terms to take the reader off guard but is lucid and just about technology to help the seasoned as well as the newbie.
6. How to Make Money in Stocks
A national bestseller, How to Make Money in Stocks is a seven-step guiding reference for minimizing risk and maximizing gains to build a generation of wealth for investors.
The book is a magnum opus and has comprehensive details covered about the stock market. Neil’s CANSLIM strategy that allowed him to turn into a multi-millionaire is a time-proven strategy that demonstrates how the equity (stock) market(s) really works – for the passive, minority, outside investor.
The 80/20 approach invented by Neil talks about the investor achieving 80% success with 20% effort is based on the idea of proprietary metrics and tools. The book is a classic, and its trading advice is still relevant in today’s time. This pocket pinch is a must for investors who want to enjoy a great deal of wealth.
7. Broke Millennial Takes on Investing
Many new investors are on the younger side, only just now coming into a stock market that has undergone seismic shifts in the last two decades, especially since the economic crash of 2008.
Erin Lowry’s Broke Millennial Takes On Investing is one of the best stock market books for beginners for its approach to several questions geared towards millennial investors, like “Should I invest while paying down student loans?” or “Should I use a Robo-advisor or an investing app?”
For millenials this book is an indispensable guide that speaks your language and tackles the problems and challenges of investing in modern, real-world terms, including everything from how to find investment advice online to picking stocks that are socially responsible. This is the second book in “Broke Millennial” series.
8. Beating the Street
Next in the list of stock market books for beginners is Beating the Street.
Legendary money manager Peter Lynch explains his own strategies for investing and offers advice on how to pick stocks and mutual funds to assemble a successful investment portfolio.
Peter Lynch also shows you how you can become an expert in a company and how you can build a profitable investment portfolio, based on your own experience and insights and on straightforward do-it-yourself research.
This book is excellent for long-term value investment opportunities and helpful to individual investors. It explains the fundamentals of picking your stock in a very simple language.
9. The Warren Buffet Way
The Warren Buffett Way is a book about investing, written for the investment world. It explores in great detail the nine tenants that Buffett has used in his investment history and explores the nuances of all of the major purchases he’s made over the past fifty-something years.
The book explores his influences, his mentors, and his partners. It’s very much a financial book. But it’s also a book about Buffett himself. As such, it’s rich with anecdotes, colorful commentary, and the piercing insight that while we as human beings often overcomplicate things, there is a tremendous advantage to following a few simple, yet timeless principles.
What was fascinating to see in a financial book was the focus on humanity that was peppered throughout. If there’s one message in the subtext that comes through loud and clear from Buffett’s professional life, it’s this: “In evaluating people, you look for three qualities: integrity, intelligence, and energy. If you don’t have the first, the other two will kill you.”. The simple language of the book makes it easier to understand and follow.
10. Stocks to Riches
While a lot of book has written on the financial & business aspect of investing, but there are only a few that covers the behavioral part of investing. Stock to Riches by Parag Parikh is one of the best among them.
The book talks about the decision-making part of the market as to deciding when to buy or sell when to churn your portfolio, how much of portfolio to attribute to particular stock etc. And believe me, this part of the investing is equally important & equivalent to finding the right stocks/ doing the fundamental research in terms of creating wealth.
11. The Money Game
What’s the difference between a bear market and a bull market? What are the safest types of investments? How do we capitalize on growth?
Readers will learn all this and more in Adam Smith’s The Money Game, which The New York Times Book Review calls the best book there is about the stock market.
More than just understanding the intricacies of the market itself, however, Smith helps would-be investors understand the importance of knowing themselves, knowing their own tolerance for risk, what drives their investment behaviors, why we want to get rich, and what success in investing means for us.
12. The Little Book That Beats The Market
Need more specific investing advice? It’s hard to go wrong with Joel Greenblatt’s handy and accessible Little Book That Beats the Market.
Readers will find the foundational tools they need to begin picking stocks, while learning the ins and outs of what makes the stock market tick, without being weighed down by a lot of stock market jargon that new investors won’t understand.
With an established system of buying good stocks at affordable prices, this book – which added a still to its title in the most recent editions – is a practical how-to for the newbie investor.
13. The Coffeehouse Investor
Next in the list of stock market books for beginners is The Coffeehouse Investor.
For most of us, investing is a means to an end. That end may be a more comfortable life, a secure retirement, college tuition for our kids, a bigger house, or starting our own business.
Whatever the case may be, we all have other things that we would rather be devoting our time and energy to than watching stocks rise and fall.
Bill Schultheis, a longtime investment advisor for Smith Barney, gets that. And it led him to put together a book aimed at casual investors, aka people who want to build wealth without letting it overtake their lives. If that’s you, then this slim volume is a must-read!
14. The Physics of Wall Street
Sure, Wall Street follows certain rules, which you’ll learn in some of the other books on this list, but those rules are generally seen to be the realm of laws, or regulations, or mathematics. Statistics and market forces.
In this fascinating book, author James Owen Weatherall shows how physicists influenced the market, and how physics may yet provide some of the models that will shape how we invest going forward.
From models designed to predict earthquakes instead of predicting market crashes to how quantum theory may affect the Consumer Price Index, this fascinating volume takes you through both the history and the possible future of a Wall Street where physics can (and often does) rule.
15. The Psychology of Money
This is a bonus recommendation and yet the most important recommendation of all the books above. While this isn’t a finance book per se, it’s a great exploration of the human mind and the science behind the way we think.
In the Psychology of Money, Morgan Housel examines personal finance through the lens of human behavior. It’s a fresh take on a well-trod subject. Many personal finance books focus on exogenous considerations: e.g. how the stock market works, how to select stocks or build a portfolio, how to time the market, etc.
Housel’s focus is the relationship between people and money—with particular emphasis on the human variable of the equation. Morgan teaches you how to have a better relationship with money and to make smarter financial decisions.
Instead of pretending that humans are ROI-optimizing machines, he shows you how your psychology can work for and against you.
Thanks for reading the post. Do you have any other book in your mind If yes, write your answer in the comment section below.