Best beginners books on share market

In stock market you have two ways of learning- first, go invest your money and lose it and learn from your mistake and second read the books written by successful investor and learn from their experiences. Reasonable man will select second option because it is time saving and most important money saving.

There are some basic books for the stock market. Beginners shall read them.

Warren Buffett and the Interpretation of FinancialStatements. I recommend this book only for beginners because after reading this book you get a better position to understand financial terms of balance sheet and it is very helpful to evolve common thinking about stock market and which company is best to invest?

1. The Intelligent Investor: The Definitive Book on Value Investing

Written by Benjamin Graham. You can say that it’s a holy book for stock market. Author of this book was one time mentor of Warren Buffett and the main focus of this book on value investing. The concept of value investing evolves from this. Although this book written at the very early age but its principle still applicable on today’s market. It's a best book on share market ever written. Reader may face some difficulty because of its old age language.

2. Security Analysis – Benjamin Graham

How to evaluate any company? Or how to interpret balance sheet? Or how to find undervalued stocks? How to crack intrinsic value of any share? All the related answer you will get from this book. Best book for value investor.

3. The Dhandho Investor: The Low–Risk Value Method to High Returns.

Written by Mohnish Pabrai. He is Indian-American businessman and investor. So if you want to understand his investing style, then go for it. Value investing is the core of this book and it talk about concept like “Heads, i win; tails, i don’t lose much.” And one of the most loving concept “Few Bets, Big Bets, Infrequent Bets.”

4. Warren Buffett letters (1957 to onward)

This is not a book but collection of letters which Warren Buffett written to his shareholders.

Market has so many books on Buffett philosophy but it’s totally vague until and unless you not go through Buffett’s letter. You want to understand Buffett philosophy without understanding what he said himself makes no sense. Anyone can get it from Berkshire Hathaway official website or from financial institution website absolutely free.

5. One up on wall street

Written by Peter lynch and John Rothchild. Peter lynch is legendary American stock investor and businessman. He is best known for his growth investing strategies. If you want know “how to analyse fundamentals of a company?” then this book must be your first choice.

Market has lots of book on stock market, but for the beginners these five books are best basic books on share market, so that you can avoid common mistakes in share market.And then you have your own choice.

"GOOD LUCK"

Comments

10 common mistakes in the share market by beginners

10 common mistakes in the share market by beginners:- Mistakes? way of learning. Always learn from your mistakes, take a responsibility of own mistakes and try to avoid it, it shows high morals of man. But in share market, one thing always keep in your mind that mistakes in share market never be forgiven. So it never be good to commit any error, always try to learn from others. Maybe after your own mistakes, you would not able to stand again. There are 10 very common mistakes in the share market by the beginners:- 1. Looking on stock market as a tool of making quick money:- Beginners enter in the share market with the mindset that “ share market is gambling and they can make quick money here ” it’s wrong mindset. They mix Gambling with share market that is not right and it dishonor the share market and create bad reputation on others mind. In the gambling you put your money in bets but in share market you invest on companies. And with some basic knowledge you will never lose. So ...

How to invest in the share or stock market?

How to invest in the stock or share market? There are three ways through which you can invest your money in stock market. The sole purpose of investing is making profit, which investing style you adopted didn’t matter until and unless that style is not contrary to law like spreading false news in the market or pump and dump techniques. There are mainly two ways of investing style which broadly followed in the stock market (i) value investing (ii) growth investing. Except this, here one more investing style is, about this investing style we will talk in the last. Value investing:- Benjamin Graham known as the father of value investing. Although he never used value investing word. The book “ The Intelligent Investor ” best known for value investing. if you have taken your investing decision based on analysis of company’s balance sheet, profit and loss statement, cash flow statement and other ratios like P/E, EBITDA, Debt to equity etc. then you are value investor. Valu...

Intrinsic value and how to calculate intrinsic value of any share?

What is intrinsic value? Intrinsic value is hidden or real value of any share. Then how it is different from market value of shares? To answer this you need to understand that market value of any share is influenced by so many external factors like news in market, greed in investors and political condition etc. And calculating intrinsic value we exclude all these factors so that we can reach the real value of any given share. Now we easily understand that market value and intrinsic value can be differ with each other. Need of calculating “intrinsic value” It excludes all the external factors from shares which influenced its price and tell us real value of it. It provide margin of safety and minimize our risk factor if rightly calculated . It tells estimated amount which we will earn in future. It reveals the secret that stock in undervalued or overvalued. How intrinsic value of stocks is calculated? There are mainly two ways through which anyone can calculate intrinsic valu...

Vishal Bharadwaj

Search This Blog