There are numbers of books, articles and blogs are available on the stock market or equity investing. You have to be careful enough to choose a book to read and can take out some crisp from it. Those who have just started nurturing personal finance and feeling interested in the topics like stocks, mutual funds, real estate, investing, insurance etc. they are recommended to read my article ‘Six Personal Finance books in India which you should read today’.
After getting the huge response from the above article I have decided to recommend some books which can help you to invest in the stock market in India.
Here I have limited my choice to Indian Authors as they are easy to read and you can relate more to the readings. I am not recommending the well-known book such as ‘The Intelligent Investor’ by Benjamin Graham, ‘The Tao of Warren Buffet’ by Buffet and Clark, ‘Learn to Earn’ by Peter Lynch etc. as they are not very easy to follow for a common investor who has just started investing.
If you are really interested about stock market and do not how you can start you can read A Step by Step Guide on How to Start Investing in Stock Market.
So, here are the following five best stock market books:
Stocks to Riches:
There are lots of books on the stock market and equity investing for beginners. This book is one of the best books for beginners to have knowledge on Indian stock market. The book is written by the renowned broker, investor and founder of PPFAS mutual fund Mr. Parag Parikh. He articulated the various perspectives such as how the market works, sentiment among the investors, brokers, analysts’ role in the market and how an investor behaves or decide the buying and selling of
He articulated the various perspectives such as how the market works, sentiment among the investors, brokers, analysts’ role in the market and how an investor behaves or decide the buying and selling of stocks in a very lucid manner. I am sure that people will enjoy reading the whole book without any break.
It shows the path to the retail investor how to invest in the stock market for a long time. It is a tested and proven guideline which you can easily follow for your investment in future.
You can see the reviews on Amazon, how this book helps to the common investor.
So, read the book and start investing in the stock market.
Value Investing and Behavioral Finance:
This is another masterpiece from Mr. Parag Parikh, the great investor cum entrepreneur. You must have heard about the concept of value investing. When a stock is identified as undervalued in the stock market and it has potential to grow high, investing in that stock is called value investing. But choosing a value stock when it is low priced with enormous potential, is a very difficult task for a common investor.
This book shows how the investors’ behaviors affect the investment decisions. He also told from his rich experience that how those investment decisions led to poor returns and other market movements.
The author also set the correction and figured out how to create long term value and set investment strategies based on the principle of behavioral finance.
How to Avoid Loss and Earn Consistently in the Stock Market:
This book actually gave me a lot of learning about the stock market. Mr. Prasenjit Paul has written this book thinking the beginners in mind. In this book, he has admitted that he had started to read the renowned book, the intelligent investor which was very difficult to read and could not finish it. People who want to know about the basics of stock market investing can try this book for a simple and crisp way to look into the stock market.
He has also figured out what are the financial ratios and figures such as ROE, ROCE, PE, EPS etc. to be checked before investing in a stock. He has founded a stock advisory firm Paulaseet.com which is recommending the multi-bagger stocks to the investors.
The stock brokers and analysts can make you fool by recommending stocks frequently. You will wonder knowing how he bulk SMS consists of different stock tips which are received by you every day, works not to give you tips but to earn money for few market manipulators.
This is also the best seller in Investment & Securities book section on Amazon.
Investing in India:
Mr. Rahul Sarogi, a value investor over a long period of time and managing director of Atyant Capital has written this book. This book is on value investing opportunities in India. He explained how India is full of great investment opportunities which are mostly untapped and how should you look at it.
He has shown the way how you can separate out the value stocks. To explain that, he has explained five criteria which are capital allocation, business fundamentals, financial strength and relative opportunity. The book is written based on the investors who are no investing in the stock market or unable to use the potential of Indian equity market.
The book also explains the government, politics and other influences to market in detail to take you through the whole eco system of investing in stock market.
You can also read a detailed review of this book on Moneylife.
Buy this book on Amazon.
Fundamental Analysis for Investors:
You need the capability of analysing the fundamentals of any company to invest in the stock of that company. This is a skill, one has to build for successful investing. You will learn the potential of a company in terms of sales, earnings, dividends etc. It is again a value based approach to stock market investing.
The book will also help you understand the analysis from economic and industry perspective. Mr. Raghu Palit, the author of the book explained the way how you will find the inconsistency in financial reports, how you can judge the company’s management and its products.
Fundamental analysis will help you to build a solid consistent performing portfolio which will give you a great return in long term.
Hope, you will enjoy reading these books which I have suggested above. I have excluded one book here i.e. Everything You Wanted to Know about Stock Market Investing by CNBC TV18 as this book has been shortlisted in my earlier article ‘Six Personal Finance books in India which you should read today’. Actually, I think this book is also required for the investors who are staying away from the direct investing in stocks and has exposure in equity though mutual funds only.