Eight books to get you started in the stock market

• One Up On Wall Street - Peter Lynch

Peter Lynch is one of the world's most successful and respected investors. Former manager of the Magellan fund at Fidelity Investments, Lynch generated average annual returns of 29.2% over 13 years, a remarkable performance that solidified his reputation in the financial markets. In his book, Lynch reveals his investment philosophy and strategies that can help even beginners succeed in the stock market. He stresses the importance of investing in what you know, advising investors to focus on companies whose business model and products they understand. Lynch also encourages investors to ignore market predictions and economists, focusing instead on the micro-economic scale, that of individual companies, studying the company's structure, business model, financial health and other characteristics. He advocates the "invest in what you see" approach, suggesting that investment opportunities can often be found in everyday life and the products we use. He also proposes a classification of companies into 6 categories: slow-growth stocks, stalwarts, fast-growth stocks, cyclicals, asset plays and turnaround companies. The book highlights the importance of patience and a long-term perspective. Lynch explains that stock market investing is not a quick way to get rich, but rather a way to gradually build wealth by staying invested for the long term. "What If You Knew Enough to Win in the Stock Market" offers practical advice and a simplified approach to investing that can help demystify the stock market. The key ideas developed by Lynch, such as investing in companies at the heart of our circle of competence and patience, are basic principles that can serve as a solid foundation for any investment strategy. Personally, this was the first book I read on the financial markets at the time, and I loved it straight away.

• The Intelligent Investor - Benjamin Graham

The Intelligent Investor is the bible for value investors, written by Warren Buffett's master, Benjamin Graham. First published in 1949, this book remains an essential resource for novice investors. Graham, nicknamed the "father of value investing", was a renowned economist and professional investor who taught at Columbia University, where one of his most famous students was Warren Buffett. The book walks investors through the principles of value investing, which involves buying undervalued stocks and focusing on their long-term potential rather than short-term market fluctuations. Graham stresses the importance of fundamental analysis, which examines a company's finances, management and position in the industry to assess its true value. One of the key ideas developed by Graham is the concept of "margin of safety", which suggests investing with sufficient margin to absorb mistakes or unforeseen events. He also advises investors to diversify their portfolios to reduce risk. The book is also known for its passage on Mr. Market, an allegory to describe the irrational and contradictory traits of the stock market and the risks associated with groupthink. "The Intelligent Investor" is a must-have in a library for the beginner as well as the advanced investor. Benjamin Graham's teachings remain relevant today, even if some of the examples provided are a little outdated. It provides a solid foundation for anyone wishing to enter the stock market with a thoughtful, long-term approach.

• The Psychology of Money - Morgan Housel

This is the latest addition to my personal library. "The Psychology of Money", written by Morgan Housel, is a book that explores the human behaviors and beliefs that influence financial decisions. Housel, a former columnist for The Wall Street Journal and currently a partner at The Collaborative Fund, uses his experience to break down the complexities of finance into understandable concepts. Housel argues that financial success depends not only on intelligence or education, but also on how well you manage your emotions and expectations. Among the book's key ideas, Housel points out that wealth is what you don't see (money saved and not spent), that financial independence is more valuable than money.is more valuable than the display of wealth, and that behavior is often a more determining factor than pure investment skills. He also highlights the importance of humility, recognizing that luck plays a role in success, and the need to think long-term. This book offers a refreshing and accessible perspective on personal finance management and investing, focusing on the behaviors and beliefs that can help or hinder success. It's essential reading for any beginner investor (or non-beginner, for that matter) who wants to understand the psychological forces at work when it comes to managing money and making informed investment decisions.

• Rich Dad, poor Dad- Robert T. Kiyosaki

An earlier book on the psychology and management of personal finance, "Rich Dad, Poor Dad" by Robert T. Kiyosaki explores the differences between the financial mentality of his biological father (poor father) and that of his adoptive father (rich father). The author highlights the importance of financial education, often neglected in the traditional educational system. For an investor new to the stock market, this book offers fundamental lessons on how to manage and invest money. Kiyosaki emphasizes the importance of acquiring assets that generate passive income, rather than relying solely on a salary. He encourages readers to learn how to make money work for them, instead of working for money. The book's main ideas include the distinction between assets and liabilities, the importance of real estate investment, business creation and the acquisition of financial skills. Kiyosaki also advises taking calculated risks and learning from mistakes. The author, with his personal experiences as an investor and businessman, offers a realistic and practical perspective. His straightforward approach and pragmatic advice make "Rich Dad, Poor Dad" a relevant read for anyone wishing to get started in the stock market.

• High Returns from Low Risk - Pim Van Vliet & Jan De Koning

This book is co-authored by Pim Van Vliet, a portfolio manager specializing in low-volatility strategies, and Jan De Koning, an investment expert. Less well-known and more "niche" than previous books, this book explores a counter-intuitive but crucial idea: low-risk stocks can generate superior long-term returns compared to more volatile stocks. The book is a valuable resource for novice investors seeking to understand the mechanics of the stock market. It debunks the common belief that high risk is necessary to achieve great returns. Instead, Van Vliet and De Koning demonstrate through research and case studies that investors can benefit from more cautious investment strategies. The authors discuss concepts such as the "low-volatility anomaly", which shows that less volatile stocks often outperform their riskier counterparts in terms of risk-adjusted returns. They also explain how investors can build a solid portfolio by focusing on high-quality stocks, those with stable earnings and low debt, for example. Pim Van Vliet brings to this book his experience as a practitioner in the financial markets, having managed billions of dollars in low-volatility investments. Jan De Koning complements this expertise with an in-depth knowledge of investment strategies. The book focuses on how to succeed in the stock market without taking unnecessary risks. He emphasizes the importance of a disciplined, data-driven approach to building a sustainable investment portfolio.

• The Little Book of Common Sense Investing - John C. Bogle

John C. Bogle's work is part of the exciting "The Little Book" collection, which includes such reference works from Louis Navellier or Christopher Browne. Bogle, founder of the Vanguard Group and pioneer of index funds, shares his wealth of experience and practical advice for success on the stock market. The book emphasizes the importance of long-term investing and portfolio diversification. Bogle advises investors to focus on low-cost index funds, which track the performance of a market index, such as the S&P 500. According to him, this strategy often beats actively managed funds, which attempt to outperform the market, but are generally more expensive and less successful over the long term. Bogle also stresses the importance of patience and discipline. He recommends that investors resist the temptation to react to short-term market fluctuations and stick to their original investment plan. All in all, "The Little Book of Common Sense Investing" is a must-read for novice investors looking to invest passively in funds or ETFs. It offers clear, proven advice for building a solid, profitable portfolio over the long term.

• The Richest Man in Babylon - George Samuel Clason

"The Richest Man in Babylon", written by George Samuel Clason, is a classic of financial literature. First published in 1926, this book offers timeless advice on money management through parables set in the ancient city of Babylon. The author, George Samuel Clason, was a successful businessman who began publishing maps and guidebooks for travelers before turning to writing educational pamphlets on personal finance. His writings, initially distributed by banks and insurance companies, became extremely popular, leading to the compilation of his parables in "The Richest Man in Babylon". The book focuses on basic principles of personal finance that are equally applicable to stock market investing for beginners.

Among the key ideas, Clason stresses the importance of paying yourself first to build wealth, living within your means by avoiding unnecessary debt and spending less than you earn. He recommends investing wisely, investing in areas you deeply understand. Clason warns against over-risky investments and advocates diversification. The author stresses the importance of continuing education to increase one's value on the job market and make better financial decisions. For investors new to the stock market, "The Richest Man in Babylon" offers a solid foundation for understanding financial discipline, the importance of savings and the principles of wise investing. Clason's advice, though formulated in an ancient context, remains relevant and applicable to modern financial markets. Many of the precepts are common sense for the most part, but these basics must be truly mastered if one is to excel.

• The millionaire's highway - MJ DeMarco

"The Millionaire's Highway", written by MJ DeMarco, is aimed at those who aspire to financial independence through entrepreneurship and smart investing. MJ DeMarco, a successful entrepreneur and self-taught investor, shares his experiences and lessons learned in building his own fortune. The book highlights the importance of creating passive income streams and breaking free from preconceived notions of wealth, often associated with long-term salaried employment and traditional savings. DeMarco insists that true financial freedom is achieved by building systems that generate income without depending on time spent working. These ideas are very popular on social networks in the age of entrepreneurial culture, and many are borrowing MJ DeMarco's ideas. He distinguishes between the fastlane, a metaphor for an approach to wealth creation that favors value creation and innovation, and the slowlane, the traditional path of salaried employment and savings, often too slow to achieve significant wealth. This book gives pertinent advice on the mentality to adopt in order to succeed. DeMarco encourages thinking like an entrepreneur, even when investing in the stock market, seeking out undervalued opportunities and focusing on long-term growth rather than quick, speculative gains. The book's main ideas include the importance of financial education and lifelong learning in identifying the right investment opportunities, the need to take calculated risks and to step outside one's comfort zone.s and stepping out of one's comfort zone to accelerate wealth growth, and the creation of systems and businesses that can operate independently, generating passive income. MJ DeMarco's experiences and advice provide a framework for thinking differently about money and investing, with a focus on action, innovation and financial education.

I hope you find this list of 8 books useful. For those of you who have already read everything, I'll be back soon with a new list of books, this time aimed at seasoned investors.