In order to be successful in the stock market, investing in companies with solid fundamentals is essential.
Warren Buffett is an excellent example of someone who invests based on fundamentals and as a result, has been very successful over the years. So if you're looking to achieve similar success, make sure you read the below books:
1 - How to Avoid Loss and Earn Consistently in the Stock Market by Prasenjit Paul
It is a dream project for the author as he has spent many years interacting with many years to develop this book.
This book starts with an interesting question - 'There are 100s of books on how to make money from stocks, but why do over 80% of the retail investor suffer losses?' and it provides a detailed explanation to get rid of the misconceptions in the retail investors' mind.
Capital prevention is the most critical aspect of investing than profit-making. Hence the first two chapters are entirely dedicated to this topic. The central theme of the book is it doesn't require a fancy MBA degree to shortlist high-quality stocks.
The author has spent considerable time reading and digesting 'The Intelligent Investor' and 'One up on Wall Street' books. Hence, he aimed to provide a simplified investing book for Indian investors.
After reading the complete book, I confidently say that author has mostly succeeded with his efforts.
It is wholly focused on Indian stock markets with many practical examples (but the same learning can be applied to any market), and it is a beautiful gift for anyone who wants to learn to invest in India.
Buy Here (paid link)
2 - Coffee Can Investing by Saurabh Mukherjea
Most Indian investors invest only in - a) Gold, b) Real Estate, or c) Mutual Funds, and they aim to earn little above the bank deposit rates.
Some people get success with this approach. However, many get stuck due to bad entry/exit in their investments.
This book explains all the traps in these approaches. For example, how ULIPs, which have a high tenor and hefty upfront commission fees, are pushed to the customers by RM in some banks.
It also explains the typical Indian mindset of investing only in gold and real estate (88% of investment on these two products) and how it can backfire in specific market crash conditions.
It provides sensible advice on wealth management and the construction of the individual portfolio.
It is a must-read book for anyone who wants to invest sensibly and retire happily and early.
Buy here (paid link)
3 - You Can Compound by Vivek Mashrani
This book starts with the story of Champak and Ranjita, a typical Indian middle-class couple. Chatur worked in IT, and Ranjita was a homemaker.
They were leading a happy life earlier but faced many setbacks when they entered a new phase of life: parenting. The same salary that was enough to live a lavish lifestyle earlier looks very small now.
This is the story of most Indian middle-class couples. The author has done a commanding job by narrating the problems faced by this couple and how their wise friend Ayran provides solutions to them.
Each chapter starts with an attractive quote on investment. For example, this is the quote we read before we begin reading the first chapter:
"The trouble with being in the rat race is that even if you win, you're still a rat."
This book is divided into three parts:
The first part is all about the basics.
The second part is about implementing the strategies in the market.
The third part is about refining and fine-tuning the strategies.
It is one of the rare books that connect fundamental and technical analysis under the title of 'Technofunda.' Hence it is a must-read book for anyone who wants to excel in the stock market field.
Buy here (paid link)