{"id":7013,"date":"2021-01-01T10:52:19","date_gmt":"2021-01-01T05:22:19","guid":{"rendered":"http:\/\/capitalante.com\/?p=7013"},"modified":"2021-01-01T10:56:19","modified_gmt":"2021-01-01T05:26:19","slug":"stock-market-books","status":"publish","type":"post","link":"https:\/\/capitalante.com\/stock-market-books\/","title":{"rendered":"Top 25 Best Stock Market Books Every Investor Must Read"},"content":{"rendered":"

Financial freedom is the ultimate goal for every individual. First of all, you should prepare a perfect investment strategy to get started. When it comes to investing in the stock market you need to learn how to invest in the stock market. In this detailed guide, we’ve compiled a list of some of the best stock market investing books for beginners who want to boost investing knowledge and skills to pick value stocks. Here are the top 25 best stock market books for beginners.<\/span><\/p>\n

Book #1. Intelligent Investor by Benjamin Graham<\/span><\/strong><\/h2>\n

Needless to say, The Intelligent Investor is among the ace investor Warren Buffet’s all-time favourite value investing books. This book helped him to build an investment portfolio of over 73 billion dollars. In this book, the author Benjamin Graham focuses on the following points,<\/span><\/p>\n

Investing vs. Speculating<\/span><\/h3>\n

Let’s make it clear with an example. Suppose you want to buy a tailoring shop. You are left with two choices. First, you should visit the tailoring shop headquarters, check the total income, free cash flow, assets, and liabilities, if any. Then come up with a final price of the tailoring shop. The second option is you approach to meet the owner to buy his tailoring shop. Then you make the payment whatever the owner asks for. It is clear from the above examples that an investor follows the first option and the speculator follows the second option.<\/span><\/p>\n

\"Investor<\/a><\/p>\n

Margin of Safety<\/span><\/h3>\n

Let’s make it clear with an example. After making an analysis of the stock you find that the intrinsic value of the stock is around $100. Fortunately, the stock is currently trading at $100. But you are waiting for the stock to come to the level of $90 or $80 or even $70. After a market correction when the stock trades at $80, you buy the stock. The difference between the intrinsic value of any stock and the price you buy the share is your margin of safety.<\/span><\/p>\n

Mr. Market<\/span><\/h3>\n

The author describes Mr. market as a person who plays with the emotions of the investor. Here the author described Mr. market as the business partner of an investor who is a sentimental person. One day Mr. market knocks at your door enthusiastically and offer you to sell your stake in any company\/stock at a very higher price. And then Mr. Market demands a similarly higher price if you want to increase your stake by buying his stake. Contrary to that, one day Mr. market knocks your door depressed and willing to sell his stake for a very low price and additionally gives you the choice to sell your stake at a very low price.<\/span><\/p>\n

As an intelligent investor, you need to execute a profitable deal when Mr. market offers you buy low and sell high. You need to invest wisely in a company where the fundamentals are intact and buy stocks when you get stocks at an attractive valuation and below intrinsic value.<\/span><\/p>\n