Where Do I Start In The Stock Market?
I believe that investing is a life-long journey. It is not a destination. To me, it is all about knowing all about myself while I am attempting to make a good returns out of my capital.
I can't say I have the best advice out there, so I can only relate to you what I have done for myself. I am weak in classroom lectures style and I learn things very slowly. Concepts don't get to me quickly so I need to reread something over and over again just to understand one simple thing to me.
Hence, videos & books are the best ways for me. If I have to choose one way to learn about investing; it would have to be books.
Books are always available to me, and if I don't understand something I can always refer back to books.
So in my opinion; here are the 3 best beginner books in order:
1) Warren Buffett And The Interpretation Of Financial Statements
This book pretty much explains almost anything there is to know about the financial statements. In fact, I have picked pretty good stocks since day one because one of the few books I read was this book.
It listed out almost step by step what is what in the statements and it's so simple it's laughable. I would never thought financial literacy could be explained so easily!
I would go as far as if you keep this book as a reference, and you pick and buy stocks according to its "guide"; you should do quite well. Good stuff!
2) The Five Rules For Successful Stock Investing
This book is amazing! Even though it may seem a little profound when the book explains the financial statement part, as long as throughout your investing life you refer back to it, you will learn something new and new perspective comes out from it!
What I loved most from this book is that he explains briefly why having a moat in a company is so important and he attempts to explain industries briefly, and sometimes some industries at great length what are the pros and cons having them in your portfolio.
Very insightful. You will not regret reading it over and over again.
3) Value Investing In Growth Companies
This book is pretty steep and pretty high learning curve in regards of the terms this book offers, but it's worth giving it a look.
It offers very detailed way of approaching shares systematically and after reading this book, you will get a rough idea how to hunt and gather good investment ideas.
This book is pretty tough for a rookie, but I assure you that if you can conquer this book, you are good to go in the stock market. At least in theory...
So here are my list of top 3 books you must read first as a newbie as an investor. Do you agree with my list? Do comment, thanks! Until next time!