The 5 Must-Read Books for Entering the Stock Investment World in 2025

Getting into the stock market is not as easy as you might think, especially for beginners who are still unfamiliar with the mechanics of money management, how to select good stocks, or even how to avoid mistakes that experienced investors have already encountered. Therefore, investment books become an essential tool that helps lay a solid foundation of knowledge, giving you confidence in making investment decisions.

This article will present 5 must-read investment books that are highly valuable for beginners, along with tips on how to choose the right investment book that matches your goals.

Investment Book #1: “Growing Stocks for Sustainable Results” - Basic Standards for New Traders

If you’re looking for a clear starting point, this book by Khun Kawi Chukitkasem will be your first step to elevate your knowledge.

What makes this book stand out: The author explains in an easy yet profound way, focusing on Value Investing (VI) from basic to immediately applicable levels. It covers qualitative factors such as competitive ability and quantitative factors like gross profit margin and return on equity.

Who should read this: Beginners and those wanting to build a fundamental understanding of investing. They will learn how to evaluate stocks using P/E, P/BV, and ROE.

Strengths not to overlook: It has been reprinted over 12 times, indicating that Thai readers trust the content. Khun Kawi is a leading analyst in the country and has received awards for Best Strategist from the Thai Securities Analysts Association.

Limitations: The content is quite focused on basics. If you already have substantial investing experience, some parts may seem familiar.

Investment Book #2: “The Intelligent Investor” - The Bible of Successful Investors

Benjamin Graham, the creator of Value Investing, offers perspectives that remain valuable today, even though this book was first written in 1949.

The two types of investors:

1. Defensive Investors - Those with limited knowledge who prefer not to spend much time studying. They seek safe, low-risk returns.

2. Enterprising Investors - Those with moderate knowledge who can dedicate time to research and analysis for higher returns.

Graham’s success: Between 1936 and 1956, Graham achieved an average annual return of 20%, while the market generally returned only 12.2% per year. This demonstrates that his methods are worth studying.

Who should read this: Investors with a basic background who want to go deeper, as the language can be somewhat challenging.

Note: This book is over 70 years old; some concepts may not align perfectly with today’s stock market. Use it as a guide and adapt accordingly.

Investment Book #3: “Breaking Through: Strategies for Stock Trading in Crisis” - The Heart of Thai Investors

Dr. Nivesh Mewachiraworakorn offers a different perspective on Value Investing, tailored to the Thai investment context.

Why this book is compelling: In the content, Dr. Nivesh shares that before investing in stocks, investors must understand what is most important and how to handle crises, as many overlook these opportunities.

Highlights of this investment book:

• Uses only Thai stocks, making it easy to understand.
• Written as a story, like lessons from an experienced mentor.
• Helps beginners discover their own investment style.

Dr. Nivesh’s investment philosophy: He views investing as owning a business, not just trading stocks. Holding stocks for 10 years or more is common because he believes that if the business remains good, there’s no need to sell.

Limitations: The content provides a broad overview and does not delve deeply into technical trading details.

Investment Book #4: “One Up on Wall Street” - The Art of Finding Potential Stocks

Peter Lynch, former manager of the Magellan Fund, made history by growing the fund from $18 million to $14 billion in 13 years.

Key concept - Tenbagger: Lynch searches for stocks that can multiply his investment tenfold (called Tenbagger). This is not fiction but a real investment strategy he used.

Structure of the book: The book categorizes stocks into 6 types:

1. Slow Growers (Slow Growers)
2. Stalwarts (Stalwarts)
3. Fast Growers (Fast Growers)
4. Cyclicals (Cyclicals)
5. Turnarounds (Turnarounds)
6. Asset Plays (Asset Plays)

Content and style: Written in an engaging way; you don’t need extensive financial background to follow.

Who should read this: Investors with some experience or those interested in fundamental analysis.

Drawbacks: The Thai translation has some translation issues; some sentences are hard to understand. Also, all examples are foreign stocks.

Investment Book #5: “Buffettology” - Unveiling the Secrets of the Billionaire

Mary Buffett (former daughter-in-law of Warren Buffett) and David Clark delve into Warren Buffett’s secret investment techniques. Warren Buffett is regarded as one of the greatest investors in the world.

Interesting content: This book emphasizes two main aspects of Buffett’s investing style, including tax avoidance strategies (via bond purchases) and opportunistic speculation.

Structure:

• Part 1: Qualitative stock evaluation, fairly accessible.
• Part 2: Quantitative analysis and DCF (Discounted Cash Flow) formulas, which are more complex.

Suitability: Ideal for investors with some experience who want to learn more specific techniques.

Warning: The content mainly focuses on long-term investing (around ten years), which may not suit short-term investors. It also involves many factors to consider.

How to choose the right investment book for you

###The Heart of Reading Investment Books

Preparation is the foundation of success. Investors who prepare before entering the stock market tend to avoid mistakes better, as if they are installing armor before battle. Investment books tell about mistakes others have experienced. If you study more than others, you will have an advantage in decision-making.

###Can I invest without reading books?

It’s not impossible, but it will be more difficult. You might consider investing through mutual funds managed by professionals. However, knowledge is still necessary. Regardless of the method, reading investment books remains an essential skill for everyone.

###Tips for choosing the right investment book

Prioritize books written by Thai authors because:

• Easier language - Uses familiar Thai expressions.
• Thai stock examples - Familiar and easy to understand.
• Appropriate context - Translated books may distort the original content.

3 Strategies to Outperform the Stock Market Long-Term

###1. Market Timing( Whether long-term or short-term investing, the key principle is to buy low and sell high, during both rising and falling markets.

)2. Asset Selection### Choosing growth potential assets for the long term is crucial. If the asset doesn’t appreciate, profits won’t materialize, and you may suffer from inflation instead.

(3. Asset Allocation) Diversifying investments across bonds, stocks, real estate, and cash in appropriate proportions can reduce volatility and promote sustainable growth over the long term.

Learning Path After Reading Investment Books

Turning theory into practice involves steps:

Step 1 - Build a foundation: Start with Khun Kawi Chukitkasem’s ###“Growing Stocks for Sustainable Results”( to understand basic stock trading.

Step 2 - Learn techniques: Gradually explore other technical books to find your own style.

Step 3 - Try investing: Begin with simple levels, such as investing in local indices, then study foreign stocks.

Summary: Your Investment Style Awaits Discovery

Reading investment books is not about entering a wizard’s school but about discovering your own style and methods. Every investor has their own learning approach and analytical principles.

From the various books presented, each offers a unique perspective. You might find Warren Buffett’s approach more suitable, or perhaps Peter Lynch’s search for Tenbagger brings you more joy.

Most importantly, start now. Close this page and pick up the first investment book to read, because discovering your own style and skills begins right there.