“The more that you read, the more things you will know. The more that you learn, the more places you’ll go.”
― Dr. Seuss, I Can Read With My Eyes Shut!
How true is that?
My personal experience says, majority of experts in any field have one common habit – Reading.
From childhood till date, how have you gathered knowledge about anything?
The answer varies. From your own experiences to watching TV, listening to radio, the Internet and … ? Yes, books.
I’ve acquired most of my memorable lessons from reading books.
Here’s the picture of (some) my books on investment.
By looking at the above books you’ll get an idea—of the kind of books I’m going to suggest.
I get emails- from people who are looking for jobs in equity research – asking me about the best books on equity research
Suggested books /reading for equity research and stock market analysts:
1. The Intelligent Investor – By Benjamin Graham
2. Security Analysis – By Benjamin Graham and David L.Dodd
3. The Interpretation of Financial Statements – By Benjamin Graham
4. The Essays of Warren Buffett – By Lawrence A. Cunningham
5. One Up on Wall Street – By Peter Lynch
6. Beating the Street – By Peter Lynch
7. Learn to Earn: A Beginner’s Guide to the Basics of Investing and Business – By Peter Lynch
8. Buffettology – By Mary Buffett and David Clark
9. Best Practices for Equity Research Analysts – By James J. Valentine
Best Practices for Equity Research Analysts
This book is one of the best books written so far specifically for equity research analysts.
According to the author, James Valentine, there are some non-technical skills that every equity research analyst must have.
The skills are:
- Selecting the optimal universe of stocks
- Time management
- Influencing skills, and
- Managing information flow
Read the preview of the book: Best Practices for Equity Research Analysts.
Are these books enough to become stock market/ equity research analyst?
It’s the starting point.
Apart from the books mentioned above, you need to read books on behavioral finance.
One more important resource that you must read is—annual reports of companies. Read everything in annual reports.
What’s there for you in an annual report as a stock market/ equity research analyst?
Everything. Everything about the company that you’re researching on.
You’ll understand company’s business model, financial position, operational efficiency, competitive scenario, the people who manage the company (i.e. company’s management), company’s future outlook, investor-friendliness of the company and lots of other things.
I read annual reports of the company before investing. For example, read my investment analysis report of Colgate Palmolive here.
Books or the Internet for equity research analysts?
I prefer using books to the Internet.
For a simple reason–my attention span is more when I read books (physical not eBooks).
Of course, I read on the Internet, but that’s for research and analysis purpose … not for core reading.
My observation is – the books are more in-depth and once you start reading a book, you’re more focused and less distracted.
In short, if you are wondering which books to read as a stock market/equity research analyst, you should start with core investment books and then read books on behavioral finance.
Don’t forget to read annual reports of the company that you’re analyzing. You can read the books in physical format or in electronic format as per your convenience.
How about start reading a book in the above list from today? Read only 5 pages, take pleasure in reading, forget everything while reading.
Did I Forget Anything?
There you have it, a complete list of best equity research books…from my own experience.
I spent 5 hours for this post to give you the list. Even so, I’m sure there are a few that I missed.
Or maybe there’s one on the list that you disagree with.
Either way, leave a comment below!
“Books are the quietest and most constant of friends; they are the most accessible and wisest of counselors, and the most patient of teachers.”
― Charles William Eliot