Hey guys,
I’m a novice to investing. Trying to read the classics. I need some advice on the reading order.
Many times, when we read a series of books on the same/related subject, we have that “Ohh” moment, thinking, maybe if, I’d read that book first, it would’ve made much more sense.
As most people here on the forum have read almost all the classics, maybe they could guide me on the proper reading order.
Here’s my reading list:
Pat Dorsey - The 5 Rules For Successful Stock Investing
Phil Fisher - Common stocks and uncommon profits
Essays of Warren Buffett
Seth Klamran - Margin of Safety
Joel Greenblatt - Little book the Beats the Market
Tom Copeland - Valuation
Mohnish Pabrai - Dhandho Investor
Pls re-arrange the order as you feel is the correct logical progression of learning to help me out.
I have already read:
Both Graham Books, One up on Wall Street - Peter Lynch, Prof. Bakshi’s lectures and associated articles, Poor Charlie’s Almanack, some popular (classic) VP Threads.
P.S.: Lots of generalised wisdom and abstract, inapplicable theory in my mind. Looking to construct my first formal investing framework.
It’s a good list. But I would suggest first go through all shareholders letters of Warren Buffett. Its available in kindle format for ~Rs.250. You can install kindle app on any Android/Apple device.
It will take you 1.5 - 3 months to go through all the letter. But that’s the best way to build an investment philosophy. Learn from the best, from 3rd richest person on earth, from the one who made his money from investing alone. Why to form basic philosophy using shaky principles of other investors?
Good Investment Philosophy is more important than all the other things combined. Game is played in heart & mind first. Good philosophy gives structure to thought process, gives courage, makes an investor independent thinker.
You can read other books as eachone of these other books will add something to your philosophy & techniques of analysis.
But underlying basic philosophy has to be learnt from master WB
Its great to know you have read some classic books. I think most probably you would have to read the books you mentioned 3-5 times to get the most juice out of it. By the time you reach that iteration of read, the order in which you would have read wouldn’t matter much.
In track 1, start with Pabrai, then move to Klarman and possibly Greenblatt after that. You should also add Howard Marks Most Important Thing here in this track.
Track 2, start with Dorsey then Fisher and Buffett. (Lynch,Bakshi and Munger fall in this track too)
The bigger thing is to not mix the two tracks, I.e don’t mix the investing styles.
Haven’t read Copeland.
You can also add a track 3 potentially with Fooled by Randomness, The Black Swan and ending with The Dao of Capital. I suggest do this after track 1 though.
This is my advice, maybe others think differently.
If you have been raised in a non business family where you are groomed to study hard and get a good job mentality. "Rrich Dad, Poor dad " is a eye opener. I know it is not very accurate but it will help you unlearn many of the traditional viewpoints and think with a buisness person mindset.
This was my first eye opener, which led on to the path of value investing.
That’s exactly what I’ve heard about that book again and again. I hail from a business family and have a successful startup of my own, and I’ve put this on the ice block for far too long. I’m intrigued enough (due to people recommending it highly) to give it a read. Thank you.
Ironically, I read during the first days of my induction in my career and i knew then and there that this book is going to ruin my career ;-). It made me redefine success in life and cross question spending my valuable time working for something that I am never going to own.
Some people are born/raised with a buisness mindset while some people like me need something mindblowing like this to show the path.
Hi. The name is The Thoughtful Investor. Its very good book in the Indian context. My top 4 would be:
Rich dad Poor Dad - will transform the way in Which money is to be looked at
The Thoughtful Investor - by far the best book written for Indian markets.there are lots of typographical errors which kept jarring me.But these should be ignored and kept aside.
Common Stocks Uncommon Profits - in my layman view i find this book the best to understand how to look at companies and investing. Its way better than Peter Lynch ( story teller style), Warren Buffett ( even more folksy) Howard Marks (tough to grasp in one read) Pat Dorsey (narrow outlook when talking about stocks). These 4 should go into 2nd list. Benjamin Graham, Charlie Munger are more difficult to understand and should be kept in 3rd list.
Value Investing and Behavioral Finance by Parag Parikh. They say investing is 20% technical/finance knowledge and 80% behaviour. This book is also in Indian Context. And i found it a much better read than James Montier.
Beginners must read These 4 books. I myself started with the most popular ones - Buffet and Lynch and Graham. But in hindsight i would have preferred this order. Once done one can move to others.
First go for the small easy to read books. That will build up your interest.
So I would recommend that you first go to ‘The Little Book That Beats The Market’ by Joel Greenblatt.
The Dhandho Investor by Mohnish Pabrai is an easy read. Simple language and easy to understand.
It gives some book recommendations. Then to Common Stocks and Uncommon Profits by Philip A. Fischer.
Thereafter, you may read The Five Rules For Successful Investing by Pat Dorsey. Donald says this is a much underrated book. You may also read The Little Book That Builds Wealth by the same author.
Then to Margin of Safety by Seth Klarman.
And finally to The Essays of Warren Buffett.
I have not come across Valuation by Tom Copeland. So I cannot comment on it and do not want to venture.
Since it concerns valuation it may be read pairing it with Dorsey’s book.
I’m sure most well-read people here read behavioural finance also on a regular basis. Just no books mentioned here because people on my level are still learning the basics of analysing and valuing a business. Maybe, once I become adept at breaking down a business’ numbers, I’ll give the psychology part a hearty shot.
Till that time, @Mehnazfatima, it would be great to get some recommendations from you on your favourite behavioural finance books.
I agree with you that behavioral finance is indeed an important aspect of investing. One should definitely learn about it.
But claiming that no one has recommended on the thread, is a bold statement. I would think twice before making such strong claims. Because it implicitly suggest that everyone else is a bit of a fool to have missed out on an important topic.
Mr. Vinay above has explicitly mentioned in this thread a book on behavioral finance.
Also, just because a book doesn’t have behavioral finance tag on its book cover, doesn’t mean it doesn’t teach behavioral finance. There are many recommendations above that actually cover it. for eg, The little book that beats the stock market/ fooled by randomness/rich dad poor dad implicitly talk about it.
As per my experience, books by Pat Dorsey is a Gold mine for Beginners and even for Professionals. Every fundamental Investor should read his books.
And another great source of knowledge is Warren Buffett Annual Letters. You may have read many quotes by WB floating around all over the Web. Most of them are extracted from his annual letters. I found them more impulsive when I read the whole subject matter with Warren’s quotes.
I had collected around 15 books categorized as Beginners, Intermediate & Professionals. Let me know, what you think.
I’m intrigued enough (due to people recommending it highly) to give it a read. Thank you.
