Editor’s note: This article was first published in June 2015 as a list of summer 2015 picks; the “new 2015 edition” of Leones contra gacelas, its “almost 900 pages” and the price remark all refer to that edition and year.
We are kicking off our book recommendations to make the summer both entertaining and productive. This time we are recommending several books about investing and the stock market, suitable both for beginners who want to learn everything about the markets and for more advanced readers.
Each of the books on this list has one thing in common with the others: they are all very different from one another. In other words, the only thing they have in common is that they have nothing in common. And of course our perennial favourite, Benjamin Graham, could not be left out.
1. The Intelligent Investor, by Benjamin Graham.
We are including it in a list of recommendations once again because I consider it the bible of investing.
The lessons from Graham that inspired Buffett still hold their value over time, because the stock market business still comes down to the same thing: buying something good at a cheap price, with that margin of safety.
The bible of value investing.
2. Leones contra gacelas (Lions vs. Gazelles), by José Luis Cárpatos.
If The Intelligent Investor is considered the bible of value investing, Cárpatos, with his book Leones contra gacelas, is on his way to becoming the bible of trading. Completely updated in the new 2015 edition, it is less a book than a perfect speculation manual that explains, in an engaging way, practically every concept you need to get started in investing. It includes personal anecdotes from Cárpatos himself, as well as seasonal patterns, money management and trading psychology.
It is very useful for learning these concepts and then applying them to trend trading. As for the price: if someone asked me whether I think the book is expensive, I would say yes. But if someone asked me whether it is worth what it costs, the truth is that it is. Its almost 900 pages make it a perfect manual.
3. Reminiscences of a Stock Operator, by Edwin Lefèvre: the fictionalised biography of Jesse Livermore, one of the greatest speculators of all time.
We have already devoted an article to Jesse Livermore, who is probably regarded as the greatest speculator in history. The book is somewhat strange (I couldn’t say why), but the story of a man who got rich and went broke several times while searching for the perfect investment method is well worth knowing. Livermore is remembered for his ability to anticipate market moves before they happened.
It also talks about market manipulation in the early days of the stock exchange, something that is still with us. If you are looking to learn about the stock market, this is not your book, but if you want to open your mind about speculation and enjoy the life story of this investor, it is very interesting. Recommended for trading enthusiasts, because Livermore was the best in this field.
4. One Up on Wall Street, by Peter Lynch.
A finance classic in which the legendary Peter Lynch describes his method for achieving financial success. Lynch starts from the premise that non-professional investors can beat the professionals by using the information they have at hand.
It is a genuinely interesting book, written in plain language (no jargon), in which anyone can grasp the message Lynch wants to get across: any investor can work out which companies will be the most profitable simply by keeping their eyes open to all the products and services around them in daily life.
5. El fabuloso mundo del dinero y la bolsa (The fabulous world of money and the stock market), by André Kostolany.
A rather underrated book in Spain, as it doesn’t appear in the usual recommendations, when in fact I would recommend it both to those who want to start investing in the stock market and to those who are already in it.
Written in an engaging style, without jargon. And written by a speculator. Simply instructive and entertaining. Don’t expect any magic method for learning to invest, but it will change your outlook to some extent. An ideal book to start with (and to keep going with).
See also: 8 books Warren Buffett thinks everyone should read
Featured image: Bennys Buidl Fabrik, CC BY-SA 4.0, via Wikimedia Commons.
