Stocks markets have a long history in India and globally but it is not so easy to understand how it works and how to use the right investment strategies to make wealth. More importantly, there may not be one person or institution who can teach you the history, the basic principles of stock markets, successful investment principles and what all homework you need to ensure that you don’t suffer losses or feel cheated after a while.
Here some of the best books can enlighten you and perhaps answer many of the questions for which you were seeking answers.
One of the first books I read about stock markets was “Ohariyilude Engane Nettam Koyyam” by veteran celebrity stock investor and portfolio manager Porinju Velath (Equity Intelliegence). I had read only the Malayalam version of the book and no idea whether they have an English version. Anyway, the book is out of stock now. This book gave the basics of how to analyse a company, a stock and also analyse the broad market indicators, macro perspectives, government policies and so on. It also discussed the secrets of billionaire investors such as Warren Buffet, Philips Arthur Fisher, Sir John Marks Templeton and Peter Lynch. (Anyway I have misplaced my copy of this very useful book)
Here is a collection of 10 books that every investor should have on his bookshelf and must have read atleast once:
#Bulls Bears and Other Beasts – A Story of The Indian Stock Market: This book captures the colourful history of Indian stock markets and uses a fictional character Lal Chand Gupta, a plant technician who enters the broker’s office in Dalal Street and becomes a jobber. It shows how scamsters such as Harshad Mehta and Ketan Parikh used their own unique strategies to manipulate the market resulting in losses of crores of rupees to investors.
For investors who are used to the advantages of online trading and mobile apps, the evolution of stock markets in India and various strategies used by scamsters can help. It deals with the Harshad Mehta scam, the tech scam of Ketan Parikh, the IPO rigging scandal of 2010 and the NSEL commodities trading fraud involving Rs 5600 cr losses to investors.
Author: Santosh Nair
Publisher: Pan Macmillan
#From Harshad Mehta to Ketan Parikh-The Scam: This book by award winning business journalist and Padma Shree award winner Sucheta Dalal and her husband Debashis Basu. They had earlier written the book, The Scam: Who Won ,Who Lost Who Got Away. She broke the Harshad Mehta scam of 1992.
The new book is a detailed exposition of how Harshad Mehta and Ketan Parikh duped banks, financial institutions and investors with their fraudulent transactions. This book is not for the lay investor and requires working knowledge of stock markets, money markets and bank operations. But it is a must read for corporate professionals, management, commerce, law students, researchers and journalists.
Authors: Sucheta Dalal and Debashis Basu
Publisher: Ken Source
#Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffet The World’s Most Famous Investor
This book published in 1999 shows how the successful billionaire investor chose the stocks to be included in his portfolio. This book is authored by Mary Buffet, former daughter-in-law of the legendary investor and noted Buffettologist David Clark.
It gives an insight into how Buffet identifies the stocks, the mathematical calculations, his top stock picks, and is quite useful for beginners as well as veteran investors.
Authors: Mary Buffet, David Clark
Pages: 320 pages
#The Intelligent Investor Revised Edition: The Definitive Book on Value Investing
This book is a revised edition of Benjamin Graham’s classic The Intelligent Investor that was published in 1949. The new book published a decade ago contains an updated commentary by noted financial journalist Jason Zweig and how to apply Graham’s principles in present market context. Value investing helps investors stay away from short term trends or hypes and unlock long term value with their stocks.
Authors: Benjamin Graham
Price: Rs 450
#Everything You Wanted to Know About Stock Market Investing
This book is meant for the new investors who can understand how stock works, the preparations required for a thorough knowledge about investing in different stocks. It also lays emphasis on macro economics and government policies that have an impact on business. It also helps you understand the manipulations to raise up prices of a stock and how to respond in times of panic. It also gives insight into data analysis and tools required for fundamental and technical analysis. It also shows you how to compute equity investment returns before and after tax.
Authors: CNBC TV18
#Value Investing and Behavioral Finance: Insights Into Indian Stock Market Realities
Markets are ruled by emotions and understanding behavioural finance helps in avoiding anxieties. Greed and fear have to be used wisely to time market decisions- when others are greedy, be fearful and be greedy when others are fearful. It uses investment trends in the last three decades to show how behavioural biases affect investment decisions. It also advises how to spot investment opportunities and pitfalls in commodity stocks, growth stocks, PSU’s, IPOs, sectors and index stocks. It is a must read for stock brokers, bankers, lay investors, portfolio managers, fund managers and students.
Authors: Paragh Parikh
Publisher: Tata McGraw Hill
#How To Make Money Trading In Charts:
Technical analysis is a tough nut to crack for many investors. Even those who have been investing for a long time avoid such technical areas and depend on advice from traders or broking firms to invest. However, if you have the time and inclination, technical analysis can help you time you buy and sell decision so as to maximise profit.
This book has chart patterns and analysis using real examples from the stock market. It has a list of 150 charts of Indian stocks to learn buy and sell signals. Trading patterns, momentum indicators, break outs and reversals are all dealt by this author who also wrote a previous bestseller, How To Make Money Trading Derivatives.
Authors: Ashwani Gujral
Publisher: Vision Books
#Fundamental Analysis for Investors
The first step of successful investing begins with identifying the right stocks to invest. Here you have to go by company balance sheets, financial reports, macro economic trends, government policies, company annual reports, financial ratios, management strengths and weaknesses and so on. Investors shouldn’t just be misled by tips, hunches or assumptions.
This book is useful for understanding the importance of fundamental analysis to pick the right stocks for your portfolio.
Author: Raghu Palat
Publisher: Vision Books
Price: Rs 239