Warren Buffett said “We don’t’ have to be smarter than the rest. We have to be more disciplined than the rest”. And according to Oxford University, reading brings the most discipline in a person than anything else.
Not only Warren Buffett, all the other Wealthy and Successful people only have two things in common. First is Reading and the other is Focus. From Bill Gates to Elon Musk to Ratan Tata to Peter Lynch, you can name any successful investor in this world and surely, they are all big-time book readers.
One of the most asked questions in our Instagram page is “What book should I read to become a successful investor”? Well, in this article, I am going to mention the Top 5 Books That Every Investor Must read.
And I am not just writing by researching the internet, I have personally read them too and that’s why I am not involving “The Intelligent Investor” in this list because if you are a new investor then that book won’t help you at all as you won’t understand most of the terminologies.
That’s why it’s important that you start with the Beginner books then make your way up to the advanced books like “The Intelligent Investor”.
I have ordered this book the day it was launched and this book contains exactly what a newbie investor look for. Investonomy is the perfect book that explains everything that’s happening in the Indian Stock Market world.
You will definitely learn everything and every terminology that you want to know in the Stock Market world. Pranjal Kamra briefly explains the fundamentals and essentials that every beginner must acknowledge before getting started.
In short, if you are scared to enter into the Stock Market then Investonomy is a must-read book for you.
This book is specially for Indian Investors only. It not only has the information about the Stock Market but it also explains how a person behaves and reacts during the Market Crash or Bull Run.
Basically, you will learn how to maintain your cool when the Stock Market crashes. Understanding the Stock Market and how it behaves is important but understanding the psychology of the investors is even more important.
Number #3: The Compound Effect by Darren Hardy
The Compound Effect doesn’t really cover anything specially about the stock market but investors must read this book to know how compounding effect works.
Albert Einstein said “Compound Interest is the Eighth wonder of the World. He who understands it, earn it; he who doesn’t, pays it.”
This book is important because it not only helps with your income and success but it also helps you by showing you can live a beautiful life and how you can develop personal relationships into a different level by making really small steps.
The beauty of the compound effect is that you don’t have to commit a lot. In fact, it’s the opposite. You only have to make very small changes in your life and that will compound to something so huge that’s beyond our imagination.
I read The Compound Effect several times and that’s how my Dividend investment Journey started back in 2018 for me. I also started with Rs 10,000 in the Stock Market and today its valuation is over Rs 30 Lac. Few years back, it was totally unimaginable for me and I never thought it could be possible.
If you are an Intraday Trader then you must read this book. Edwin Lefevre explains how a boy “Jesse Livermore” who became the famous American investor, earned multi million dollars from the Stock Market with Intraday Trading and ultimately lost all of it during early 1900s.
Jesse Livermore was one of the most influential speculators on the Wall Street. This book shows the madness of the investors during the Bull Run or Meltdown. According to Jesse Livermore, the mistakes of individuals are frequently the result of the inability to control fear and greed.
That’s why this book is so important because the lessons Livermore delivered that time is still relevant to every generation of investors and day traders.
Every Investor knows who Peter Lynch is. He is an American Investor, Mutual Fund Manager and philanthropist. Peter Lynch is the World’s first Mutual Fund manager who averaged a return of 29.2% per year, making him the best-performing mutual fund manager in the World.
In this book, Peter Lynch explained how amateur investors can be. He says, people spend weeks after weeks to buy a house, checking every feature and comfort before making a decision. But the same person will hear a “Stock Tip” on a bus and will spend all of his life saving in that company without reading a single page about them.
Peter Lynch also explains that there’s no way any person in the World could say how the Stock Market will perform in the future.
For those who are looking for investment opportunities can find opportunities everywhere. Most people in India are familiar with Britannia, Dominos, Coke, Pepsi, Surf Excel, Rin, etc. Nearly every Indian drinks Coke or Pepsi or eats Britannia biscuits & Breads, or uses Lifebuoy soap but only a few of them owns shares of these companies.
In this book, Peter Lynch explains how even a child can pick good stocks without knowing much about the Stock Market. He explains not only how to invest, but also how to think like an investor.
If you have read more books and would like share it with out community then please comment down below with your thoughts.