5 Must Read Books
Here are the 5 "must read" books for stock market investors:
1. How to Make Money in Stocks by William J. O'Niel - The book teaches investors how to device a winning system in good or bad times. I like the chapter on how to spot a "breakout". Most "5-bagger" stocks start with a breakout. The move implies that there is a definite change in the company's fundamentals and a new valuation paradigm applies.
2.) Reminiscensces of a Stock Operator by Edwin Lefevre - The book is about Jesse Livermore - a touted stock operator during the go-go days of the early 1900's. The author vividly narrates the insights of Jesse Livermore in trading the market. It all boils down to two basic things: price and volume. The book is a must read for traders who rely more on price movements rather than market fundamentals in buying stocks.
3.) Speculation as a Fine Art by Dickson Watts - The book is about the principles of speculation. According to Mr. Watts - "Speculation is a venture based upon calculation. Gambling is a venture without calculation."
4. One Up on Wall Street by Peter Lynch - The book is written by the legendary fund manager of Magelan Fund -Peter Lynch. He talks about how to spot "10-baggers" using common sense. He narrates how he invested GAP and Wal-Mart when both companies are still 10 store/1 state operations and held on to it and see them grow into a multi store/global operations. It all boils down to the ability of the company to replicate its business model.
5. The Intelligent Investor by Benjamin Graham - The book is the "bible" of Warren Buffet - the chairman of Berkshire Hataway. It teaches investors how to properly value stocks using basic metrics like return on equity, discounted cashflow etc.
Amongst the 5 books mentioned, the first 3 books are quite relevant to the local market. On the other hand, the other 2 books mentioned assumes an efficient market scenario which may not apply to the Philippine market.
The books are available at www.amazon.com
1. How to Make Money in Stocks by William J. O'Niel - The book teaches investors how to device a winning system in good or bad times. I like the chapter on how to spot a "breakout". Most "5-bagger" stocks start with a breakout. The move implies that there is a definite change in the company's fundamentals and a new valuation paradigm applies.
2.) Reminiscensces of a Stock Operator by Edwin Lefevre - The book is about Jesse Livermore - a touted stock operator during the go-go days of the early 1900's. The author vividly narrates the insights of Jesse Livermore in trading the market. It all boils down to two basic things: price and volume. The book is a must read for traders who rely more on price movements rather than market fundamentals in buying stocks.
3.) Speculation as a Fine Art by Dickson Watts - The book is about the principles of speculation. According to Mr. Watts - "Speculation is a venture based upon calculation. Gambling is a venture without calculation."
4. One Up on Wall Street by Peter Lynch - The book is written by the legendary fund manager of Magelan Fund -Peter Lynch. He talks about how to spot "10-baggers" using common sense. He narrates how he invested GAP and Wal-Mart when both companies are still 10 store/1 state operations and held on to it and see them grow into a multi store/global operations. It all boils down to the ability of the company to replicate its business model.
5. The Intelligent Investor by Benjamin Graham - The book is the "bible" of Warren Buffet - the chairman of Berkshire Hataway. It teaches investors how to properly value stocks using basic metrics like return on equity, discounted cashflow etc.
Amongst the 5 books mentioned, the first 3 books are quite relevant to the local market. On the other hand, the other 2 books mentioned assumes an efficient market scenario which may not apply to the Philippine market.
The books are available at www.amazon.com
posted by jack galt at
9:47 PM
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