Best Books On Fundamental Analysis: When starting out your investment journey, we all feel like we could use a mentor to guide us on the path to wealth and financial freedom. If you were one of the lucky few to be around investors such as Warren Buffett and Rakesh Jhunjhunwala, then their knowledge would have taken your portfolio to the moon.
On the other hand, if you had a bad mentor, he or she would have driven your portfolio to the ground or lower. Luckily for you, we have compiled a list of the best books on fundamental analysis to get you started on your investment journey! On another note, we have covered a YouTube video on the basics of Fundamental Analysis so take a look at that as well. –
Fundamental Analysis For Beginner Investors – Introduction
Looking at ace investors who have made billions from a handful of companies, it is evident that you only need to get it right a few times to get wealthy. But how do you pick the right company to invest in, especially when there are over 5000 companies to choose from today?
For long-term investors, fundamental analysis is the way to go. By definition, fundamental analysis is the detailed study of companies to determine the stock’s real value or “fair market value”.
Today’s accessibility allows anyone to study a company from anywhere, as all the tools you will need are available for free online. Stock market screeners such as Trade Brains Portal give you access to thousands of stocks at your fingertips, allowing you to choose any number of stocks you like to invest, is based on individual preferences.
But – How do you know if a stock is considered “fundamentally strong”?
Best Books On Fundamental Analysis
We’ve compiled a list of the best books for fundamental analysis to get you started on your investing journey.
1. Fundamental Analysis for Dummies – Matt Krantz
The title of this book is quite a “hammer on nail” situation.
Fundamental analysis for Dummies takes you through all the basics of studying a company and understanding terms such as fair value in a step-by-step guide. You’ll learn how to assess a company’s financial performance historically. This includes studying annual reports, quarterly reports, and earnings releases.
Studying a company involves looking at a lot of statements released by the company and that requires some groundwork. This book will help you learn exactly how to go about doing that.
2. Learn to Earn – Peter Lynch
Peter Lynch is one the most well-known investors, who have authored the next book on our list of “best books for fundamental analysis”. Lynch began his career at Fidelity Investments, where he was given the head position of the Magellan Fund. He has co-authored three books with John Rothschild, including Learn to Earn.
Investing isn’t a subject that was taught in schools for the longest time. This is why a majority of educated people lack basic financial knowledge as well as money management skills. This book hopes to change that. As the title suggests, you will “Learn to Earn”. You’ll not only learn how to invest but also adopt the investor mindset.
3. The Intelligent Investor – Benjamin Graham
Benjamin Graham is widely regarded as the “Father of Value Investing”. His books, which were written decades before investing was even recognized, still hold ground today. The concepts in his books are made to make you “The Intelligent Investor”.
This book explains “value investing”, a concept that was barely known in 1949, the year it was published. Even Warren Buffett described it as “by far the best book on investing ever written”.
Fun Fact –
A copy of The Intelligent Investor signed by Warren Buffett went on auction for $25,250! (₹20,60,753.46)
In this book, you’ll understand value investing, Mr. Market, a character that represents the stock market, margin of safety, and The Benjamin Graham Formula.
4. Common Stocks And Uncommon Profits – Philip A. Fisher
Philip Fisher was the founder of Fisher & Company, an investment counselling firm. Common Stocks and Uncommon Profits was published in 1958. The author was interested in investing in growth stocks – companies that had great potential in the long term.
You must read this book to understand – Scuttlebutt Investing i.e., picking stocks that have already been thoroughly studied, “15 points to look for a common stock” and most importantly, “What To Buy”.
5. Ratio Analysis Fundamentals – Axel Tracy
When you’re learning the fundamentals of a company, there will be a lot of new terms that you will come across, and some of them are shown in the form of ratios and formulas. There are indeed so many formulas and ratios that you need a separate book explaining them in detail.
The numbers tell a story and if you’re good at reading them, then it’ll unfold all the more easily.
Ratio Analysis Fundamentals tells you how to –
- Read financial statements
- Compare Profitability
- Looking for financial data
- And studying 17 financial ratios used in a business.
These are our recommendations for learning fundamental analysis of companies. If you feel like adding any more books to this list, then mention them in the comments below. Thank you for reading this blog on “Best books On Fundamental analysis”. Happy Investing!
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