Best “Long-Term Investing Book” For The Stock Market?

It is necessary for investors to start investing at an early age.

But note, before investing in the stock market, you need to learn about it.

Books are a good source to learn about this field.

Best Long Term Investing Book For The Stock Market

Here are some Investing Books on the share market:

“The Essays of Warren Buffett: Lessons for Corporate America” (1997) by Warren Buffett

The Essays of Warren Buffett Lessons for Corporate America 1997 by Warren BuffettIn his essays, Warren Buffett—widely considered to be modern history’s most successful investor—provides his views on a variety of topics relevant to corporate America and shareholders. Young investors can get a glimpse of the interface between a company’s management and its shareholders, as well as the thought processes involved in enhancing a company’s enterprise value.

Buffett’s essays include discussions on corporate governance, finance, investing, alternatives to common stock, mergers and acquisitions, accounting and valuation, accounting policy, and tax matters. Buffett outlines his basic business principles, and as the steward of Berkshire Hathaway Inc. (BRK-A), informs the shareholders of the company that their mutual interests are aligned. He has a philosophy of bringing in talented managers at portfolio companies and leaving them alone. He advocates purchasing shares of businesses at times when these stocks are trading at a discount from their inherent value, but he opposes following investing trends.

“The Intelligent Investor” by Benjamin Graham

main qimg 4348b5619e85edde35592572de9f6b07 pjlq“An investment in knowledge pays the best interest.” – Benjamin Franklin

This is the best book on investing in the stock market and tells the investors to conduct fundamental analysis before buying any stock.
This book was written in 1949 and has been hailed by Warren Buffett as the best investing book ever written. Benjamin Graham is considered the “father of value investing.” This paradigm advocates the purchase of stocks that appear under-priced relative to their inherent value, which is determined through fundamental analysis.

Graham delves into the history of the stock market and informs the reader on conducting fundamental analysis on a stock. He discusses various ways of managing your portfolio including both a positive and defensive approach. He then compares the stocks of several companies to illustrate his points.

“Rich Dad, Poor Dad” by Robert Kiyosaki

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This is a must-read book and it focuses on those types of investments that generate periodic cash flows.

This classic is a must-read for young investors. Kiyosaki’s view is that the poor and middle class work for money, but the rich work to learn. He stresses the importance of financial literacy and presents financial independence as the ultimate goal to avoid the rat race of corporate America.

The author points out that while accounting is important to learn, it can also be misleading. Banks label a house as an asset for the individual, but because of the required payments to keep it, it can be a liability in terms of cash flow. Real assets add cash flow to your wallet

“Beating the Street” (1993) by Peter Lynch

Beating the Street 1993 by Peter Lynch

Peter Lynch is one of the most successful stock market investors and hedge fund managers of the past century. He started as an intern at Fidelity Investments in the mid-1960s. Nearly 11 years later, he was tasked to manage the Magellan Fund, which at the time had close to $18 million in assets. By 1990, the fund had grown to a whopping $14 billion in assets. During this time, the fund boasted average returns of more than 29.2% per year.

“Beating The Street” allows the reader to peek into Lynch’s mind and thought processes in terms of deciding whether to buy or sell a stock. Lynch believes that an individual investor could exploit market opportunities better than Wall Street, and encourages investors to invest in what they know.

This book helps the investors in making investment decisions such as whether to buy or not a stock for investment.

“Think and Grow Rich” by Napolean Hill

main qimg b197cf17f61461bb4fbe1bd1c3b22671 lqIn this book, the author has published 13 principals with his research and conveys the psychology of success.

“Think and Grow Rich” was written during the Great Depression, and has since sold more than 100 million copies worldwide. Hill conducted extensive research based on his associations with wealthy individuals during his lifetime. At the suggestion of Andrew Carnegie, Hill published 13 principles for success and personal achievement from his observations and research.

These include desire, faith, specialized knowledge, organized planning, persistence, and the “sixth sense.” Hill also believed in brainstorming with like-minded people, whose efforts can create synergistic energy.

“Value Investing and Behavioral Finance” By Parag Parikh

Value Investing and Behavioral Finance By Parag Parikh

Smart and successful way of investing calls for a thorough understanding of behavioral finance not just market sentiments, crowd behavior or company performance

This is a well-structured book that helps in understanding about sector investing, contrarian trading behavioral traits, etc.

The top books, in my order of preference, are as follows:

  1. The Intelligent Investor – Ben Graham
  2. The most important thing- Howard Marks
  3. Mastering the Market Cycles- Howard Marks
  4. Bulls, Bears and other Beasts- Santosh Nair
  5. The little book of Value Investing- Christopher Browne
  6. The Little Book of Behavioral Investing- James Montier
  7. Value Investing, from Graham to Buffett and beyond
  8. The little book of Valuation- Aswath Damodaran
  9. Value Investing and Behavioral Finance- Parag Parikh
  10. Other Peoples Money- John Kay.

This is my top ten, Yours can be different but each of the above title is more than worthwhile to read.

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Who makes more money, traders or investors?

Investors as a group earn the total global return on capital, on the order of $10 trillion per year. Traders mostly make money from other traders, but global Alpha—the net return of all traders—is probably around $100 billion a year. So all investors make about 100 times as much as all traders.

On the other hand, there are many more investors than traders, and the variance among them is greater. So the top traders can get very rich. The richest people in the world got there by combinations of business and investing (if we count criminal and government activities as a business) but among the second tier, single-digit billionaires, you’ll find lots of traders.

Hopefully, this was useful, Thank you for reading.

Have an amazing day…….