Three Books All Investors Must Read

Since I started investing, I have read numerous books on the stock market. These books have taught me concepts like the fundamentals of picking a good stock, the psychology of winning investors and when to sell our stocks.

Three books, in particular, stand out as having the greatest impact on my investment mindset. In fact, I should say that taking the time to read these books might have been my best investment decision. They have allowed me to achieve substantial returns from the stock market just by applying the principles I had learned. So here is my list of the three books that have shaped my investment mindset.

One Up on Wall Street by Peter Lynch

Peter Lynch was a well-established mutual fund manager who averaged an astounding 29.2% annual return between 1977 and 1990. He believed that any investor could beat the market just by concentrating on a few investment principles and a little bit of research.

In this book, he highlights 14 aspects of a company that we should look out for. Even though this book was written well over 30 years ago, most of his investment principles are still relevant today.

This was also my first book on stock market investing and it definitely has shaped the way I think as an investor.

Common Stocks and Uncommon Profits and Other Writings by Phillip Fisher

This book is another classic that has defined growth investing in the stock market. Phillip Fisher believed in investing for the long haul and looked out for companies driven by research and development. He started his own money management company, Fisher & Co, which he managed until his retirement.

The book highlights the “scuttlebutt” investment technique. This technique involves gathering information from every source that you can find. Fisher believed that even our day-to-day experience could provide information about the stock market and its component companies.

The Warren Buffett Way by Robert G. Hagstrom

This book is perhaps one of the best summaries of how any retail investor can learn to invest from the legendary investor, Warren Buffett.

Hagstrom brilliantly summarises how Buffett thinks about investing. He breaks down the investment process into thinking about a company’s business, management, and financial tenets, before finally going into valuations.

The first edition was published in 1994 and sold over one million copies. It had spent 21 weeks on the New York Times Hardcover Nonfiction Books Best Sellers list.

The Foolish Bottom Line

These three classic books may have been written decades ago, but each of them has shaped the way numerous successful investors think. Even a seasoned investor can learn a thing or two from these investment classics. For new investors, reading these three books may turn out to be your best investment decision.

Meanwhile, for more (free!) investing insights, sign up here for your FREE subscription to The Motley Fool's investing newsletter, Take Stock Singapore. It will teach you how you can grow your wealth in the years ahead.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Jeremy Chia doesn't own shares in any companies mentioned.