24 March 2015

Indian Investor - 4 Must read books

What do the most successful investors like Benjamin Graham, Warren Buffet, etc have for us? WISDOM. The art of stock picking needs some skills, traits, etc which either you can be born with or you must work hard to acquire them. Reading investment books is a great way to learn the trade from the masters. With 1000's of books available, you really need to get your hands on the best ones to get a good return on the money you invest on these books.

Investors and traders keep asking us for "ideas" but are reluctant to do their homework. They don't want to invest time in reading books. Once you buy a stock, you have invested your money in the business, the management  and the factors that influence them. Your stock picks need a solid reason when someone questions you on the reason you bought a particular stock.

Here is a list of the MUST READ books for every investor. These book are more than enough to start of with:

The Warren Buffet Way

Warren Buffet is widely considered as one of the most successful investors of all times. The "Oracle of Omaha" has come a long way from selling chewing gum and coca cola in his neighborhood to becoming the richest man in the world by investing. The Warren Buffet way gives the readers an insight into the innovative investment strategies and which made the CEO of Berkshire Hathaway a Guru for investors world wide.

Academic learning will never teach you how to make money. As Warren Buffet says, you need the right heroes to become successful. This book gives you an in-depth knowledge about his investment theories which can help you with stock picking when applied in our Indian markets. What business to buy, which companies or sectors to avoid, these are questions which trouble every Indian investor. A book like The Warren Buffet Way shows you how Warren Buffet does it.

You can buy this book on Amazon or Flipkart.

The Intelligent Investor

Warren Buffet considers this book to be THE BEST BOOK written on investing. Chapters 8 and 20 have been the foundations of of his investment style since he started. Benjamin Graham is the one Warren Buffet looks upto. A MUST READ book for every investor. The Intelligent Investor which was written decades ago is still relevant in today's markets. Investors always fear when the market falls and get greedy when the markets start rising. How to get over this psychology? What is the write price to pay for a share? How much margin of safety does the current price offer? These are some of the questions that will definitely be answered after you read this book.

You can buy this book on  Amazon and Flipkart

One up on Wall Street

Peter Lynch is one of America's most successful fund managers who says that everyone can become an expert in stock picking. He says that just by observing businesses progress and the economic environment around us, we can find multibaggers before experts do! He gives a set of instructions to follow while reading financial statements and separate the wheat from the chaff. The Indian investor will definitely find it useful in today's ever changing environment.

You can buy this book on Amazon and Flipkart

Security Analysis

Another Benjamin Graham book finds it's way in our must read list! First published in 1934, this has been rated as the MOST INFLUENTIAL FINANCIAL BOOK ever written. Benjamin Graham came to be known as the Father of value investing after this book. Apart from his techniques, the book also features insights of some of Wall Street's leading money managers.

You can buy this book on Amazon and Flipkart

To start of with. These books are more than enough! Spend the coming months reading these classics and you will feel your maturity level increase and your outlook towards investing change.

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