We all think of famous investors, "How they pick stocks", "How they analyse a company" etc. We spend hours reading about them in hope to get some strategy(or more often shortcut) to earn money. But do you really know what is the difference between famous investors and average investors? Knowledge. Smart investor spends time in researching his/her stocks while average investor just follow stock prices and wait for prices to fall so that they can buy LOW (hahaha....!!!). Well here is a list of six book which will tell you about art of investment. It is not necessary to follow word by word what book says but these will surely add to your knowledge stock and in stock market knowledge is money.
- The Intelligent Investor (Benjamin Graham) - Provides a framework and aphilosophy of investing based on what level of risk you would like to take. A phenomenal read, and can get academic/slow at times, but worth it. Do not miss reading this.
- The Single Best Investment (Lowell Miller) - This was recommended by my friend Ashish to me, and I have been a follower of this technique of investing (finding value stocks that have consistently given good dividends and keep growing their dividends over the years.. a fantastic investment philosophy, based on the premise that if the company doesn't truly earn cash, it can't give a dividend.. chances of fraud or loss in the long run are less and hence a less risky way to invest)
- The Little Book that Beats the Market (Joel Greenblatt) - Provides a good set of basics on investing in many market conditions.
- The Little Book that Builds Wealth (Pat Dorsey) - An excellent read on how to identify Moats, and how to understand the difference between popular idea of what Moats are, versus what are truly the right Moats to look for. Don't miss this one.
- The 5 Rules for Successful Stock Investing (Pat Dorsey) - Currently reading this one. I like this book due to it's in depth discussion on Vauation Models and how to calculate Intrinsic Value.
- The Dhandho Investor (Mohnish Pabrai) - This book was a simple read, but provided a great philosophy on how to approach investing for the long term. I liked it though it wasn't heavy on valuation models.
