My Top 5 Investment Basics Books, & why?


(mp bajaj) #85

Have read all these except 3rd one(avoid loss). Found The Thoughtful Investor by Basant Maheshwari most useful.
My suggestion- there are many good writers in VP forum. Senior forum members my write an eBook for VP. Chapters can be decided & written by members & where suggestions can be added over time with Live Example of Indian Stocks. Most of the printed books becomes dated overtime in relation to their stock examples though basic principles remain same.


(khushi) #86

For Indian author books in English, Hindi, Marathi and Gujarati read books of Buzzingstock Publishing House.

I have personally read a few…

Liked Guide to Technical Analysis & Candlesticks by Ravi Patel.


(Bheeshma Sanghani, PhD) #87

The thoughtful investor is a very nice book. It is money well spent. There is much to learn from it though you may not sometimes agree with the content.


(malayruparel) #88

@Donald - I was interested in the framework to analyze the stock using Pat Dorsey’s model and it drew my attention towards your link - http://www.stock-picks-focus.com/opto-circuits.html. Looks like link has some problem as it opens page with different sort of content. Can you please help with the revised link or with framework based on Pat Dorsey’ model? Thanks in advance.


(Vivek Mashrani, CFA) #89

Books suggested by Safir Anand @saf at Traders Carnival today…

PS: I have not attended it…sharing from a twitter handle.


(Thanoj Kumar Vakacharla) #90

Please share the books which give better understanding for fundamental analysis of stocks.


(Vivek Mashrani, CFA) #91

Books recommended by Sanjay Bakshi sir at Investors Carnival…

PS: I have not attended it…sharing from a twitter handle.


(nparekh79) #94

This list looks great.

I would also recommend everyone (especially people from non Accounting / Financial backgrounds) to read the Modules on Zerodha Varsity.

Karthik Rangappa has explained complex financial concepts very simply.


(Peabody) #95

Book of value is selling for £ 22 in Amazon. Is it so expensive ?


(pla7yer) #96

I have read quite a few books on investing .Two books made an impact
1.Five rules of successful investing by Pat Dorsey
2.One up the wall Street by Peter Lynch

These two are must have books in investor shelf


(Donald Francis) #97

http://www.valuepickr.com/resources/opto-circuits-stock-analysis-dec-2008/

Based on PAT Dorsey Template for Stock Analysis. Please note this was the first ever report compiled by me in my investment journey back in 2008 – when I was a complete greenhorn, and when Opto Circuits business hadn’t yet run into rough weather (2011) with one acquisition too many. While this report perhaps does justice to business analysis as per PAT Dorsey’s 5 Rules for Successful Investing book’s template, it does not do enough diligence on examining the BS with equal depth – especially Subsidiaries, Intangibles or Related Party transactions, and the like. The bigger margin of safety was in the Price :slightly_smiling_face: !!


(pla7yer) #98

I agree Donald
But Pat Dorsey has never mentioned in his work that it is is a Bible for investors
In many places you can see terms like ‘most businesses comes under’ and ‘almost all’ wherein he himself admits there are exceptions and he hasn’t covered all the aspects of a business and all types of businesses.
For a newbie ,it is definitely a resourceful book because a lot of basics were covered in that book.


(Vivek Mashrani, CFA) #99

(malayruparel) #100

I just completed reading ‘Value investing and Behavioral Finance’ by Parag Parik. Entire book is well written. Chapters on Commodity investing and Index investing challenged my thought process. I am summarizing these two chapters for this forum:

Commodity Investing

The Paradox: Conventional thinking does not hold true for investing in commodity stocks.
When one is looking at returns to be made from investing in a commodity stock, the conventional wisdom of investing on sound financial parameters does not hold true.

Efficient and low cost producers are least benefited during upcycle and high-cost producers and heavy debt companies will be able to give higher returns to investors. Reasons for this are:
• Low-Base Effect
• Debt reduction and decline in interest burden
• Re-rating
• Lower taxes because of the loss in down cycles.

Author has tested above principle with share price comparison of Steel and Cement companies during 2003 to 2006 cycles

Index Investing

In this chapter author suggested that Index investing is in no way better than active investing. Market capitalization weightage is one of the major criteria for stock to be included in Index. Because of this criteria, the stocks are included once it has run up and of currently hot sector resulting into inclusion of expensive stocks. Index investor thus end up paying higher price for the stock impacting the future returns. Author compared the returns of stock which exited and entered the index. Returns of exited stocks outperformed the returns of entered stocks by decent margin. Looking at the difference in the returns between the laggards and the replaced stock portfolios, author summarizes that it is safe to follow the contrarian path instead indexing.

I would suggest to read this book especially above chapters.


(sachin50) #101

Thanks of for the so much info regarding various books.
Most of the books had already read but missed out the one below.
Ordered and started reading - 5 rules of successful…
Have been using morningstar.in, found quite useful.
For those looking to read books on trading, liked few :

  1. Mastering the trade by John Carter
  2. Quantitative momentum by Wesley Gray.
    I am follower of value investing ( but a very small portfolio), my first book as usual was Intelligent investor followed by security analysis.
    Then Peter Lynch books and his 2 baggers to multibaggers … it helped a lot.
    Thanks again every one, cheers…

(Vivek Mashrani, CFA) #102

New book from Saurabh Mukherjee…

Coffee Can Investing…


(VP_amit) #103

Hi Hitesh - I joined valuepickr 5/6 months back and have been following your posts since then and love your analysis. I recently read “one up on Wall Street” by Peter Lynch as it is your favourite book on investing. I must say it is the best investing book I ever read (in my very short investing career), thanks for the great recommendation to you and everyone on this wonderful thread.
The best way I can describe why I loved the book was that I could read many parts of it while listening to rockstar movie songs and still could get a bit of what Mr Lynch was saying. So well written, in such simple language with such great humility.
I read “The Intelligent Investor” before this, but had to slog through it while this was a breeze. Both are great books but “One Up” is was easier to read and digest. So for anyone getting started with investment books, I agree - “One up on Wall Street” is the one to start off with.

Happy reading to all!

Regards
Amit


(Shivram) #104

I thank the members for posting their favorite books. This list helped me to prioritise and read them. I should say I enjoyed reading most if not all of them. Although a few did go over my head. I have learnt a lot from them. I am now listing 3 books that are perhaps not mentioned above and that could be of use to investors. I certainly learned from them.

a. Understanding Michael Porter: The Essential Guide to Competition and Strategy - Joan Magretta
This book is an interesting summary of Porter’s 5 forces that enables us to apply this practically in our investment decisions. It leaves out a lot of the academic rigour of Porter’s work and limits itself to the learning and application that adds to the practical value.

b. Why Moats Matter - This book describes the moat based approach to stock selection by Morningstar. This book helps us to determine and classify the moats as none - narrow - wide and also brings in the concept of moat trends which I found very useful. In addition there are sections dedicated to assessing management and the importance of valuation. All in all, a great book for a patient long term investor.

c. A weekend with warren buffet and other shareholder meeting adventures - This book is a humorous but still detailed analysis of the shareholder meetings of various companies. This helps us to understand how shareholder meetings can be used to make a preliminary assessment of the company and understand the danger signals. In the Indian context, this may not have a full practical value but the learnings are indeed there for us.


(Shivram) #105

How is this different from his earlier book “Unusual Billionaires” which was also about coffee can investing? Moneylife does not think this book is great. Personally I too have lost interest in Saurabh’s books. The books are not to the point, too long winded and a bit unclear on what exactly the author wants to state. I still am not able to complete reading his last book due to this.

https://www.moneylife.in/article/the-buy-and-forget-of-coffee-can-portfolio-forget-it/53221.html


(Kritesh Abhishek) #106

Here are my top five investment basics books:

  1. One up on wall street by Peter Lynch: Simplest book that I ever read. The book is quite lucid and written in perspective of retails investors. The author of the book Peter Lynch suggests how a common man can make profits from the market by using what he already knows. Overall, a good read for beginners.

  2. The Intelligent Investor by Ben Graham: Amazing book to read but I won’t recommend starting with it. The latest edition of the book is over 600 pages long and it takes a significant commitment to complete the book.However, once you get some basics knowledge of the market, then it’s a must-read book. There are a number of important concepts covered in this book like investment vs speculation, value investing, Mr market, the margin of safety etc.
    In addition, Warren Buffet considers this as the best book ever written on investing. So, if one of the most successful investors of all time is recommending to read this book, then it might be worth reading.

  3. Value investing and behavioral finance by Parag Parikh: This book will give you a good insight of Indian stock market. The book covers a number of topics like value investing, sector investing, PSUs, IPOs etc.

  4. Common stocks and uncommon profit by Philip Fisher: Another good book for beginners. The author of the book ‘Philip Fisher’ explains what to buy, when to buy and when to sell. The book is based on growth investing.

  5. The little book that beats the market by Joel Greenblatt: This book describes a ‘MAGIC FORMULA’. which is also applicable in the Indian stock market.The magic formula given by the author is an efficient way of selecting the stocks. The formula consists of two key factors. They are: Earning yield & Return on Capital. If you consider these two key factors for any stock market before investing, then the result will surely be amazing.

Also read: 10 Must-Read Books For Stock Market Investors.

I hope this is helpful. #HappyInvesting.