What’s the Best Book For Stock Market Investing? That’s a great question. And since I’ve spent so much time reading investing books I’m happy to share my opinion with you.
Instead of beating around the bush and teasing you with clues about what I think the best book for stock market investing is, let’s just get to the point. So…
If you want to start investing for the long term and having a chance at beating Mr. Market then the best book for stock market investing is The Intelligent Investor by Benjamin Graham.
And I’m not the only one who thinks that! Warren Buffet also believes the Intelligent Investor is the best book for stock market investing. But…
Before you go buying that book, let me explain why it’s a must-read so you know what you’re in for with this stock market investing book.
Why The Intelligent Investor is the Best Book for Stock Market Investing:
There’s one simple reason The Intelligent Investor is the best book for stock market investing. And that’s because anything that is NOT “intelligent investing” (as described in the book), is NOT investing. Let me elaborate a little more for you.
Without an “intelligent investor” framework you are basically gambling (or speculating, as traders like to call it) on pieces of paper and historical price patterns. While you can certainly make money at this type of trading, it’s not truly investing.
Do you know why?
The Intelligent Investor is so great because it thoroughly explores a few key concepts. One of the main take-home points of this stock market investing book is the revelation that “price is what you pay, and value is what you get.”
And that is the essence of investing (getting future value at a discount). So here’s what you need to know…
The Intelligent Investor does a fantastic job of illustrating this concept of investing (for value) and then showing you how to find stock ideas and investment picks where the price is less than the value.
Finding these under-valued bargains is the main thesis of The Intelligent Investor and what (in my opinion) makes it the best stock market investing book.
But here’s what Mr. Buffett has to say…
3 Reasons Why Buffett Loves This Stock Market Investing Books:
Warren Buffett is a huge fan of The Intelligent Investor. He said it was the most impactful stock market investing book he’s ever read. But what are the things he liked most about it?
Glad you asked.
Below is an excerpt from The Dhandho Investor (another great stock market investing book from the same school of thought) that explains what Buffett loves most about this time-honoured stock market investing book.
If you are feeling a little bit curious to learn more about the best stock market investing book, I really recommend you read this Intelligent Investor book review. That will give you an idea as to what you can really expect from this amazing book, and how it will help you as an investor. Sound good?
And By The Way: If you want to learn how I incorporated this “Intelligent Investing” approach to my own portfolio I encourage you to download the free eBook below. You’ll also get weekly updates with the best tips and tools to help you improve your investing and trading decision making.