6 Best Stock Market Books
The stock market is a complex system. But you don’t need to understand every working piece to make gobs of money. The six stock market books below boil down some of the most useful investing ideas. And it’s good to note that these aren’t dry textbooks either.
Whether you’re a beginner or advanced investor, you’ll find useful tips. These books cover value investing, investor psychology and many other topics. Let’s dive in…
6 Stock Market Books for Investors
The Intelligent Investor
This book is a must-read for value investors. The author, Benjamin Graham, was one of Warren Buffett’s mentors. He’s considered the “father of value investing.” Graham focused on contrarian investing, investor psychology and buy-and-hold investing.
By reading the Intelligent Investor, you’ll gain a better understanding of how the stock market works. You’ll also uncover how to analyze and value businesses. This is where many investors fall short. Too many people invest in ideas and don’t look at what’s behind the curtain.
Favorite Chapters: Chapters eight and 20 are highly recommended. Warren Buffett has said these two chapters have been the bedrock for his investing activity.
The Richest Man in Babylon
This book is packed with time-tested financial wisdom. It pulls stories from the ancient Babylonians. In the book you’ll find entertaining stories about herdsmen, merchants and tradesmen of Babylon.
A few big themes in the book include paying yourself first, controlling your expenses and making your money work for you. People who follow the simple rules in this book can amass a great fortune.
Favorite Chapter: “Seven Remedies for a Lean Purse” is a vital section for both building and maintaining wealth. Insight from this section can help you make better money decisions.
Get Rich with Dividends
The Institute for Financial Literacy named Get Rich with Dividends the Book of the Year in 2016. The book is published in three languages (soon to be four). The book focuses on setting up a portfolio of great companies. They then pay you a growing stream of dividends.
Written for both beginner and more experienced investors, this book shows why a portfolio of dividend-growth stocks will outperform the market, provide more income each year and help you compound your wealth.
Favorite Chapter: Chapter 8 covers the 10-11-12 system. It’s used to generate increasing amounts of income each year. It’s one of the top wealth building techniques available in the stock market.
Market Wizards is a collection of stock market trading insight – but not any ordinary trading insight. The author, Jack D. Schwager, interviewed some of the world’s top traders such as Paul Tudor Jones and Marty Schwartz.
You’ll find useful information on trading stocks, futures and currencies. There’s also a psychology section that’s useful for making better investment decisions. The wisdom you’ll find in this book is well worth the reading time.
Favorite Chapter: As mentioned above, investor psychology is important. That’s why the chapter, “Dr. Van K. Tharp: The Psychology of Trading,” is a highlight from the book.
One Up on Wall Street
The author, Peter Lynch, consistently doubled the return of the S&P 500 for more than 10 years. He managed the world’s best-performing mutual fund. And to accomplish this, he found ways to find great investment opportunities before other analysts discovered them.
In One Up on Wall Street, Peter Lynch shares advantages that average investors have over professionals. And people can use these advantages to achieve financial success.
Favorite Chapter: Chapter 9, “Stocks I’d Avoid,” covers some powerful concepts. Many people get caught up in buying hot stocks in hot sectors. Although, they can find better opportunities going against or away from the crowd.
The Little Book of Common Sense Investing
This is a classic guide to the stock market written by John C. Bogle. He is the founder of the Vanguard Group and is credited with creating the first index fund. This creation has helped millions of people enter the world of investing at a lower cost.
In this book, Bogle reveals one of the best keys to building wealth. You can simply buy and hold a mutual fund that tracks a broad stock market index such as the S&P 500. This technique has helped build many fortunes. And since Bogle wrote this, fees have come down even more with exchange-traded funds.
Favorite Chapter: The book closes with chapter 20, “Investment Advice That Meets the Test of Time.” Learning cross-disciplinary concepts that don’t change will pay dividends for the rest of your life.
The stock market books above give a great insight into markets and investing. The advice and ideas come from some of the world’s best financial minds. They’ve proven themselves and have shared some of their best insight.
If you pick up one of these books, I hope you enjoy. The lessons can help you lead a more rewarding life. And as you build your nest egg, it’s good to always keep learning. So here are some of our recent financial literacy articles. Also, you can choose to sign up for our free e-letter below. It’s packed with investing insight and lessons.