Friday, October 22, 2010

Top 4 Recommended Books to Learn How to Invest in the Stock Market

By Punit Gupta
Here is what a friend once told me:
"I have a financial planner that I send money to every month and he takes care of things for me, which I know will make some people cringe as I know I should be more involved. I will be honest and say that money and investing has always made me very nervous as I have a hard time with a lot of the lingo and I just feel stupid and intimidated."

How do you avoid that? Well get investment education. You can follow the books listed here to get yourself familiarized

1.) The Intelligent Investor

Author: Benjamin Graham

Synopsis: Founder of the science of stock analysis, Graham provides readers with the basics of "value investing." Warren Buffett, noted investor and one of Graham's former students provides the introduction.

This book clearly explains two completely different investing styles in great detail. One for every day people who don't want to think about their portfolios and the other for people who wants to enjoy maximum returns. There is a basic difference between these two kinds of people. Bottom line is more research you do, the better results you are going to get.

2.) One Up on Wall Street

Author : Peter Lynch, Former manager of Fidelity's Magellan Fund (FMAGX)

Lynch is well known for his commonsense approach to investing. The key according to him is to focus on what you know. Instead of investing in the latest Wall Street fad, look around you. Is there a new restaurant chain that's doing well? Is there a company building a new plant or warehouse in your area? Such information can help you beat market returns over and over.

3.) Security Analysis: The Classic 1934 Edition

Author: Benjamin Graham

This analysis connotes the careful study of available facts with the attempt to draw conclusions therefrom based on established principles and sound logic... Sometimes they are correct sometimes they are wrong...


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