3 Best Books on Stock Market

 

1. The Intelligent Investor – Benjamin Graham
Theme: Value investing and protecting capital
Key Ideas:
Investing vs. Speculating: Investors analyze and seek value; speculators chase trends and tips.

Margin of Safety: Buy stocks when they’re priced well below their intrinsic value—this gives you a cushion if things go wrong.

Mr. Market Metaphor: Picture the market as an emotional business partner offering you stock prices daily—sometimes he’s optimistic, sometimes fearful. Be rational, not reactive.

Defensive vs. Enterprising Investor: Defensive investors want simplicity and safety (index funds, blue-chip stocks), while enterprising investors research deeply to find undervalued gems.

Big Takeaway:
Focus on long-term value, avoid emotional decisions, and always seek a margin of safety when investing.

 This is one book, which made me feel investing is not speculation. The above synopsis is also courtesy Chat GPT.

2. One Up on Wall Street – Peter Lynch

Theme: How everyday investors can beat professionals

Key Ideas:
"Invest in what you know": Pay attention to companies, products, and trends you encounter in daily life—they can be early investment opportunities.

Categories of Stocks: Lynch classifies stocks into six types—slow growers, stalwarts, fast growers, cyclicals, turnarounds, and asset plays. Know what you're buying.

Do Your Homework: Research a company’s fundamentals: profits, debt, earnings growth, and business model.

Tenbaggers: These are stocks that grow 10x in value. Identifying them early (often from everyday observations) can be incredibly rewarding.

Big Takeaway:
Use your common sense and personal experience to find winning stocks—then do deep research before investing.

3. Common Stocks and Uncommon Profits – Philip Fisher

Theme: Growth investing through understanding business quality

Key Ideas:
Scuttlebutt Method: Learn about companies by talking to employees, customers, suppliers—get the real-world view.

15 Points to Look for in a Company: Includes factors like capable management, good R&D, sales growth, profit margins, and long-term outlook.

Buy Great Companies & Hold: Look for high-quality businesses and hold them for years, even decades.

Focus on Management Quality: A company’s leadership is as important as its financials.

Big Takeaway:
Invest in outstanding companies with long-term growth potential and competent management, then hold patiently.