Best books to learn about stocks

One Up On Wall Street

Peter Lynch

What it's about:

Legendary fund manager Peter Lynch explains his strategy of looking for potential investments in your everyday life (at the grocery store, your office, etc.). He stresses understanding a company's product and story over complex economic theories.

Why it's useful:

This is the perfect starting point to overcome market fear. It empowers you to find great stocks yourself, proving you do not need a finance degree, just common sense and observation. Creating a thesis for every stock you own is vital so you know when that thesis is no longer holding true. Lynch also helps to characterise investments so you know what type of company you are analysing (e.g. fast grower, stalwart).

Zero to One: Notes on Startups, or How to Build the Future

Peter Thiel (with Blake Masters)

What it's about:

Whilst not specifically about stocks, this book argues that the best businesses are monopolies that create something entirely new, rather than just competing in an existing market. It teaches you to look for companies with a "moat" a strong advantage that protects profits.

Why it's useful:

It changes how you think about quality. It helps you avoid average companies and focus your investment capital on the truly revolutionary winners that can deliver massive long-term returns. For long term investing, you want to identify where a company has or is building a moat in a sector and what uniquely differentiates them from competitors.

Stocks for the Long Run

Jeremy Siegel

What it's about:

This is a dive into 200 years of market history. Siegel shows that despite wars, recessions, and crashes, stocks (equities) are the single best asset class for building wealth over a lifetime. This book covers a lot of overall market principles and pitfalls to watch out for. An absolute must as one of the first books you read.

Why it's useful:

It is the antidote to panic. When the market inevitably drops, this book provides the historical proof and confidence you need to stay invested, which is the most difficult (but most profitable) habit for a new investor to adopt.

Value Investing: From Graham to Buffett and Beyond

Bruce Greenwald, Judd Kahn, Paul Sonkin, & Michael van Biema

What it's about:

The definitive academic guide that defines how to calculate a company's intrinsic value (what it is actually worth). It gives you a clear method for finding companies trading for less than their true worth. Whilst some of the concepts are less relevant in today's technology driven world, the core process of evaluating a company's worth is the same and an extremely valuable tool to have in your investing arsenal.

Why it's useful:

This gives you a disciplined framework for making investment decisions. Instead of guessing, you learn how to set a price target and only buy stocks when they are selling at a discount, minimizing your risk.

Warren Buffett and the Interpretation of Financial Statements

Mary Buffett & David Clark

What it's about:

This book translates Warren Buffett's investment logic into a clear method for reading a company's financial reports. It focuses on the key numbers that show if a business is truly great and durable.

Why it's useful:

It's your first lesson in separating the good companies from the bad by looking at the hard data. You will learn to spot a high-quality, long-term winner using financial statements.