Top 10 books to become a successful investor

In the past few years, equity markets saw good traction. This is evident by the rise in the number of demat accounts. In FY19, the number of demat accounts was 3.59 crores; in FY24, it reached 14.69 crore, translating to a compounded annual growth rate (CAGR) of 26.47%.

While this is definitely encouraging, continuous learning is critical to successful investing. In this article, we list some of the most popular books that not only help you learn the fundamentals of investing, but also highlight the behavioural pitfalls, personal anecdotes and strategies to help you become a successful investor.

For Beginners

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C. Bogle

What is this book about?
This book explains how to invest wisely in low-cost index funds, with a long-term view and using common sense in investing.

What you will learn?
You will discover why it makes sense to invest in an index, how not to shoot yourself in the foot with unsystematic risk, the power of compounding, and why low-cost index funds are usually the best way to invest.

Who should read this?
While this book is a gem for most amateur investors, veterans can also use it to review the basics.

The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel

What is this book about?
This book explains why people treat money the way they do with financials with the help of 19 stories.

What will you learn?
You will discover why behaviour is more important than intelligence in financial success, the power of compounding, the preciousness of controlling your time, and how to ride through market volatility.

Who should read this?
It is a must-read for every person interested in improving their financial habits and understanding money more.

One Up On Wall Street by Peter Lynch

What is this book about?
This book is a classic investing guide that teaches the reader how to use everyday knowledge to make money in the stock market.

What will you learn?
It shall help you learn about how to pick excellent stocks, common investing mistakes to avoid, categories of stocks, and a substantial investment strategy with your own insights and professional knowledge.

Who should read this?
Beginner to intermediate investors who want to learn and excel at investing in stocks, even with little or no business experience, will find this book most beneficial.

Stocks to Riches by Parag Parikh

What is this book about?
This book explores essential stock market concepts like investing versus trading, behavioural pitfalls (sunk cost fallacy, mental accounting), and market bubbles, providing a comprehensive guide to navigating investment challenges.

What will you learn?
Readers will learn strategies for superior returns through due diligence, emotional resilience, and avoiding common investor traps. The book also delves into the psychology behind market behaviour and the dynamics of investment vehicles.

Who should read this?
Ideal for new investors seeking foundational knowledge, seasoned investors looking to refine their emotional management, and anyone interested in understanding the psychological nuances of wealth creation in the stock market.

The Joys of Compounding

What is this book about?
This book tries to combine investment strategies with personal development through lifelong learning.

What will you learn?
This book will teach you the fundamental principles of value investing, the importance of continual learning, and practical advice, including how to improve your decisions. Its lessons also include building checklists, keeping a journal, and focusing on long-term goals.

Who should read this?
This book is ideal for beginners who wish to explore the world of value investing along with lifelong learning and self-improvement.

Intermediate and above

The Intelligent Investor by Benjamin Graham

What is this book about?
The Intelligent Investor teaches you how to choose good companies to invest in and how to make intelligent decisions with your money even when the markets act crazy.

What will you learn?
You will learn how to pick up undervalued stocks and avoid taking significant risks, and you will know exactly how to invest safely and wisely.

Who should read this?
This book is a wonderful read for those who are new to investing as well as experienced investors.

Security Analysis by Benjamin Graham

What is this book about?
This book is an influential guide on investment analysis, originally published in 1934. It introduces the principles of value investing, emphasising thorough security analysis to uncover intrinsic value versus market price.

What will you learn?
You will grasp the fundamentals of analysing securities, including intrinsic value assessment, the margin of safety, fundamental analysis techniques, asset valuation methods, and insights into market behaviours.

Who should read this?
Ideal for intermediate investors aiming to master fundamental analysis and value investing principles.

Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets by Nassim Nicholas Taleb

What is this book about?
This book explores the pervasive impact of chance and uncertainty in our lives and financial markets. Nassim Nicholas Taleb, a former trader, challenges deterministic narratives and discusses how luck shapes outcomes more than we realise.

What will you learn?
You will gain insights into probability, risk management, cognitive biases, and the role of randomness in success and failure.

Who should read this?
This book is for an intermediate investor who is curious about probability, risk, and the limitations of human reasoning.

Common Stocks and Uncommon Profits by Philip Fisher

What is this book about?
This book introduces the concept of growth investing. Originally published in 1958, it outlines Fisher’s approach to identifying high-quality stocks with long-term potential through detailed analysis, which he terms ‘Scuttlebutt’.

What will you learn?
You will learn Fisher’s 15-point checklist for evaluating common stocks, emphasising factors like management quality, growth potential, and market position. The book also discusses strategies for buying and selling stocks to maximise investment returns.

Who should read this?
This book is ideal for those intermediate investors interested in growth stocks and long-term investment strategies.

Fundamental Analysis for Investors by Raghu Palat

What is this book about?
This book demystifies fundamental analysis. It teaches how to evaluate companies based on their financial performance, management, and industry outlook, aiming for steady, long-term profits through a value-based approach.

What will you learn?
You will learn economic, industry, and company analysis techniques, including ratio analysis and cash flow evaluation. You will understand how to assess management quality, interpret annual reports effectively, and calculate a stock’s intrinsic value.

Who should read this?
This book is ideal for those intermediate investors seeking to build a solid foundation in fundamental analysis.

Disclaimer: This article is for informational purposes only and must not be considered investment advice. Investors should consult with experts before making any investment decisions.