For beginners, I would highly recommend starting with a little bit of money to get the taste of the markets first – You will not get the essence of the books if you have no experience of the market.
Once you have started and lost money ( fortunately) or made money (unfortunately) due to random fluctuation of the markets, you can start with reading the following books –
The Intelligent Investor (English) – This book will give you the crux of what investing is all about, and you can build over these fundamental concepts.
There are different ways to make money in markets If you happen to chose value investing principles then following books will help a lot –
Books to learn about Value Investing Principles –
The Little Book That Builds Wealth – How to identify businesses with Moat.
The Little Book That Beats the Markets – Joel Greenblatt, Andrew Tobias – How to figure out special situations and be street smart in the game of investing.
I would not recommend reading Peter Lynch’s books – It’s better you avoid them.
Accounting is the language of businesses –
The best way to learn accounting is via online courses in Coursera etc. To further build on it in order to be able to apply basic accounting principle into valuing good businesses I think one book is enough –
To learn about human psychology –
Markets are formed by continuous buying and selling by Humans, even though nothing much changes in businesses on a day to day basis but businesses do get valued either up or down on a daily basis.
In investing you are your biggest enemy, In order to defeat this enemy in you – you have to understand yourself and markets (a group of people from the markets) and general consumers whose buying and selling decisions govern the net earning of any company.
To understand all that learning about human psychology is must, Books that can help you are following –
Learn from history –
History is not the “study of the past” history is “study of change”. More you know about how things have changed overtime and why, the more likely you will be able to think about how a particular technology or event or anything going to change the future in many possible ways. When you have learned about change, you will try to think about different possibilities rather than predicting. Key is to keep a very broad perspective. The biggest danger is when you encounter a particular technology (bitcoin) and you say ohh this technology (bitcoin) will have this outcome and we are convinced of this outcome then we don’t prepare for other possibilities. It is especially important to take into account the worst possible outcome in order to survive in Investing.
In order to get better on this, you have to learn from history as much as possible as Mark Twain said: “ history doesn’t repeat itself but it does rhyme “.
Read everything you can –
Once you acquired enough wisdom, make a habit of reading about what’s going on around you. you will be able to see patterns and make most out of them occasionally.
Listen to all Berkshire AGMs –
Something I found it personally more rewarding than reading any book is listening to all the Berkshire Hathaway AGMs.
I was moved by it so much that I created an app so that anybody can listen to it podcast way –
Do check it out – It has much more useful content now.
Android – BuffettoMungology – Apps on Google Play
I believe that’s enough to have edge over average investors on the street, Go out and make money 🙂
All the best.