The Best Way To Learn About Stocks

Mitch Nielsen / unsplash

I wanted to learn about stocks because I lost $15,000,000. I lost everything.

I was a gambler at heart. I went from playing poker every day to playing the stock market every day. That’s mistake #1. I had to end that habit. I hope I did. 17 years later I still hope every day that I ended that addiction.

But I did learn. Although I wish I had been smarter about learning. I wish I had read all of these books I’m about to recommend.

Now I’ve read them. Some of them are inspirational. Some are educational. Some are about famous investors. Some are by famous investors sharing what they’ve learned.

Anyone who reads all of these books will understand the stock market and investing at a very deep level.

Warren Buffett has his famous two rules about investing. But I would say for myself the biggest thing I learned were these ideas:

  • When you own a stock, you own part of a company. So study what makes a good company.
  • Risk management is everything. Which means keep your positions very small.
  • The unexpected always happens.
  • I had to model myself after the greatest investors in history.
  • Politics is short-term, economics is medium term, innovation is long-term.

I’ve since run a successful hedge fund, fund of hedge funds, I’ve done many successful angel investments, and I’ve written about stocks and investing for 17 years in books, in the Wall Street Journal, in the Financial Times, and with regular appearances on CNBC.

Here’s the books I recommend to get started (note: this is the start).

– β€œEssays of Warren Buffett” by Lawrence Cunningham

– β€œReminiscences of a Stock Market Operator” by Edwin LeFevre

– β€œFamous First Bubbles” by Peter Garber

– β€œSuper Money” by Adam Smith

– β€œThe Money Game” by Adam Smith

– β€œConfessions of a Street Addict” by Jim Cramer

– β€œMarket Wizards” by Jack Schwager

– β€œHedge Fund Market Wizards” by Jack Schwager

– β€œYou Too Can Be a Stock Market Genius” by Joel Greenblatt

– β€œThe Little Book of Value Investingβ€œ

– β€œWarren Buffet” by Roger Lowenstein

– β€œWhen Genius Failed” by Roger Lowenstein

– β€œFlash Boys” by Michael Lewis

– β€œThe Undoing Project” by Michael Lewis

– β€œThe Coffee Trader” by David Liss (fiction)

– β€œBillion Dollar Sure Thing” by Paul E. Erdman (or any of his financial thrillers from the 70s)

– β€œMy Own Story” by Bernard Baruch

– β€œPoor Charlie’s Almanack” by Charlie Munger

– β€œDamn Right!” (biography of Charlie Munger) by Janet Lowe

– β€œEducation of a Value Investor” by Guy Spier

– β€œAbundance” by Peter Diamandis

– Joel Greenblatt’s β€œThe Little Book That Still Beats the Marketβ€œ

– Andrew Ross Sorkin’s β€œToo Big to Failβ€œ

– β€œDhando Investor” by Mohnish Pabrai

– β€œMoney” by Tony Robbins

– β€œThe Black Swan” by Nassim Taleb

– β€œFooled by Randomness” by Nassim Taleb

– β€œA Man for All Markets” by Ed Thorp

Read these and your life will change. Thought Catalog Logo Mark

Related

More From Thought Catalog