The path to the stock market through reading 5 excellent books about stocks

Getting into the stock market must start with proper education, and books about stocks become the first honor for every investor. This article will guide you to a valuable investment knowledge library through 5 books that can enhance your stock analysis skills, along with recommendations on how to choose books suitable for your level of knowledge.

5 Stock Books to Study in 2025

1. The Intelligent Investor - Benjamin Graham

Importance: ⭐⭐⭐⭐

This book is regarded as a classic investment book, first published in 1949. Benjamin Graham, the author, is known as the father of Value Investing, who achieved an average return of 20% per year from 1936 to 1956, during a period when the overall market returned only 12.2% annually.

Investor Types: The book distinguishes between two types of investors: defensive ###risk-averse, low-return( and enterprising )knowledgeable, high-risk, potentially high-return( investors.

Key Principles: Graham advocates for rational analysis, avoiding emotional decisions, steering clear of speculation, and investing in securities with safety and intrinsic value.

Suitability: Ideal for those with a basic understanding of investing or those starting from zero.

Advantages: Clear language makes it easy to understand on the first read, with examples from familiar Thai stocks.

Limitations: The content is fundamental and does not delve into advanced details.

) 2. The Intelligent Investor - Benjamin Graham

Importance: ⭐⭐⭐⭐

This book is considered a classic investment text, first published in 1949. Benjamin Graham, the author, is known as the father of Value Investing, who achieved an average return of 20% per year from 1936 to 1956, during a period when the overall market returned only 12.2% annually.

Investor Types: The book categorizes investors into two types: defensive ###risk-averse, low-return( and enterprising )knowledgeable, high-risk, potentially high-return###.

Main Principles: Graham supports rational analysis, avoiding emotional decisions, steering clear of speculation, and choosing securities with safety and real value.

Suitability: For those with a basic investment background.

Advantages: Has stood the test of over 70 years, with a clear investment system and a model used in many educational courses.

Limitations: The translated language can be somewhat dense and difficult; most examples are from foreign stocks, and some concepts may not suit the current market.

( 3. Breakthrough: Strategies for Stock Market Crises - Dr. Nivesh Mewachiraworakorn

Importance: ⭐⭐⭐⭐⭐

Dr. Nivesh Mewachiraworakorn is recognized as a pioneer of Value Investing in Thailand. His book “Breakthrough,” published in 1999, has become a bible that sparks interest among investors of all generations.

Content Overview: Dr. Nivesh discusses key points before entering the stock market, such as what preparations are needed and how to leverage market crises, which often hide opportunities.

Investment Philosophy: His approach emphasizes buying good businesses for the long term (over 10 years), using “cool” money )reserve funds( for investments, and letting the company’s management handle operations, with proper diversification.

Suitability: Suitable for beginners who want to define their initial investment style.

Advantages: All investment examples are Thai stocks, making it easier to understand the local context.

Limitations: The content is broad and does not deeply explore technical analysis or detailed stock valuation.

) 4. One Up On Wall Street - Peter Lynch & John Rothchild

Importance: ⭐⭐⭐⭐

Peter Lynch is a legendary fund manager who grew the Magellan Fund from $18 million to $14 billion in 13 years. His success stems from finding stocks that could grow “10 times” ###Tenbagger(.

Stock Classification: The book divides stocks into six categories: slow growers, stalwarts, fast growers, cyclicals, turnarounds, and asset plays. Each has unique characteristics and investment strategies.

Core Belief: Lynch believes that amateur investors can achieve as much success as experts if they understand the businesses they choose and make rational decisions.

Suitability: Best for investors with some experience in the stock market.

Advantages: Diverse content, engaging writing style, no need for a financial background.

Limitations: The Thai translation can be somewhat difficult to read; many examples are from foreign stocks.

) 5. Buffettology - Mary Buffett & David Clark

Importance: ⭐⭐⭐⭐⭐

This book reveals the “secrets” of Warren Buffett, the world’s top investor, written from the perspective of his former daughter-in-law, some of which have never been disclosed publicly.

Content Structure: The book is divided into two main parts: the first assesses stock quality, and the second focuses on calculations and Discount Cash Flow (DCF). The latter part becomes more complex and harder to read.

Investment Approach: Buffett treats stocks as if running a business, combining ideas from Benjamin Graham (his mentor), his own experience, and influences from Charlie Munger, his trusted partner.

Suitability: Suitable for investors with some experience.

Advantages: Not overly complicated; most formulas are easy to interpret.

Limitations: Focuses on long-term (10 years or more) investments; involves many factors to analyze, making it quite complex.

Choosing the Right Stock Book for Yourself

Why should you start by reading books?

Investors who prepare before entering the stock market tend to succeed more. Books about stocks are a primary shield, sharing mistakes others have made. The more you study, the better you can avoid traps, though it doesn’t guarantee you won’t make mistakes again.

Do you need to have books, or can you do without them?

Practically, if you don’t want to read stock books, you can choose to invest in mutual funds instead, letting fund managers handle investments. However, that doesn’t mean avoiding education altogether, because selecting suitable funds also requires basic knowledge. Therefore, reading stock books is an unavoidable part of learning.

Keys to Choosing Books

For beginners just starting to invest, we recommend investing in books about stocks written by Thais, as the language and stock examples will be Thai stocks, making them easier to understand than translated books. Foreign examples can be harder to grasp and may not be applicable.

3 Key Principles to Beat the Stock Market

Step 1: Market Timing (Market Timing)

Fair investing means buying low and selling high. Timing applies to both long-term and short-term, during market rises and falls.

Step 2: Asset Selection (Asset Selection)

Good assets should have the potential to appreciate over the long term. Choosing assets without growth prospects results in zero profit or even losses from inflation.

Step 3: Asset Allocation (Asset Allocation)

Effective investing involves diversifying across various channels such as bonds, stocks, real estate, and cash, in appropriate proportions. This helps reduce volatility and ensures sustainable portfolio growth.

Investment Plan After Reading Books

After studying several stock books, the next step is practical application. It’s recommended to start simple and gradually move to more complex investments.

Step 1: Increase knowledge with basic books until you understand investment concepts.

Step 2: Practice trading with virtual systems before investing real money.

Step 3: Begin with easy options like Thai stock indices.

Step 4: Gradually study and expand into foreign stocks.

Summary

Reading books about stocks is a fundamental foundation for successful investing. The 5 recommended books each have different aims and styles. Every investor has their own way of thinking and investing approach. By reading and understanding these books, you will discover your own investment style and be able to adapt these principles to your situation. Investing in stock books in 2025 is a worthwhile long-term investment in yourself.