If you’d like to become an investor or learn more about stock analysis, then you need to know the best books on fundamental analysis of stocks. These books will be a great source of information about the stock market for beginners, as well as provide some insight into how the big money operates on Wall Street, since many books are written by well-known investors.
In fact, reading in general is important if you want to succeed in any career. If you open one of those “click-baity” articles that pop-up on Facebook with titles like “10 things that all millionaires have in common”, you will see that among the things listed there is “reading”. And it’s true; Bill Gates reportedly reads around 50 books a year, while Mark Zuckerberg challenged himself in 2015 to read a new book every two weeks. Billionaire Warren Buffett is also known to read a lot, and from time to time he mentions some of the books that impressed him (as can be seen in our list of 11 Investing Books Billionaire Warren Buffett Wants You to Read). So, unless you want to be the Donald Trump-kind of rich, you will have to have a close relationship with books, otherwise you can stick to watching “Fox and Friends” and listening to Alex Jones.
When it comes to investing in the stock market, there are plenty of resources that can guide you and provide you with information that you will need to build a strategy, so you don’t necessarily need an expensive degree, just a positive attitude and commitment. Reading books on stock trading won’t make you a stock market genius, but it can provide a decent source of income and will allow you to be your own boss, although it will require a lot of effort and much more time than a regular 9-to-5 job, as well as a lot of stress as your own money will be on the line.
Now, if you have some idea about how stock analysis works, you probably know that there is fundamental analysis and technical analysis. Technical analysis allows you to identify good entry and exit points for buying and selling stocks and doesn’t necessarily require a lot of reading on a particular company or an understanding of how it operates. On the other hand, fundamental analysis is good for long-term investors, as it can help identify companies that could provide small, but steady returns over many years. Hedge funds and other large asset management firms usually use fundamental analysis, while for investors with less capital, a combination of both would be a better approach.
With this in mind, let’s take a closer look at our selection of the 15 best books on fundamental analysis of stocks. The books on the list are not just among the best in the fundamental analysis category, but many are considered to be the best books on investing in general and represent must-reads for everybody who wants to get in the field. The titles are sorted based on their ratings on Goodreads, although some of them don’t have many reviews, so a lower rating doesn’t necessarily do them justice. And now, let’s see the list of best books on fundamental analysis of stocks.