One of the secrets behind successful investors is that they read a lot and imbibe learnings of other value investors, often termed as "Vicarious Learning".
These lessons become even more important when we can learn from their mistakes and follow a more refined and tested methodology.
As Charlie Munger once said, “You don’t have to pee on an electric fence to learn not to do it.”
Taking the spirit of vicarious learning to heart, here is a list of recommended books on investing from which any financial market enthusiast will benefit:
This is an all time classic on investing. Gem of a book which explains in detail when to buy and when to sell. Fisher has described in detail the process for selecting great businesses with competitive advantages.
He has also given detailed checklist for stock selection. This is must read book for any serious investor!!
This is a widely acclaimed book by Benjamin Graham on value investing. Written by one of the greatest advisers of the Twentieth Century, the book aims to prevent potential investors from committing substantial errors, while teaching them strategies to achieve long-term investment goals. The focus is on safe investments.
Penned by the famous Mutual Fund Manager Peter Lynch, this book elaborates on the many advantages an average investor has over professionals and how that can help them achieve financial triumph.
Lynch argues your knowledge alone can assist you in beating the pros. He has explained the process to spot great businesses surrounding us by keeping our eyes and ears open! His approach to investing is simple and powerful.
This book is another investment classic which definitely reserves to be on the reading list of every value investor. Pat Dorsey beautifully explained the process of finding moats - competitive advantages of great businesses that prevents competition to enter into its territory.
He has explained financial statements in very simple and powerful way. This is then followed by a detailed discussion on how to find moats in different sectors with relevant examples.
This is gem of a book written by Charlie Munger - the Guru of Warren Buffett. It is an encyclopedia of life lessons which describe his investment journey.
The book is must read not only for improving investment decisions but also life decisions. It has a Ten Talks section covering a wide range of his interests ranging from how one attains worldly insight to how his Multiple Mental Models could be used for business.
Originally published in TECHNO FUNDA