Saturday, July 9, 2011

HOW TO INVEST IN STOCKS ? (1)

Read. Before you start investing, you need a basic understanding of what a stock is, what it means to invest, and how to evaluate stocks. Get some basic books in stock investing. Here are some of the best books and resources for all serious investors:
• The Intelligent Investor by Benjamin Graham. Get this on audio CD and listen to it a few times and it will make a lot of sense.
• The Interpretation of Financial Statements by Benjamin Graham & Spencer B. Meredith
• Security Analysis by Benjamin Graham & David Dodd
• Common Stocks and Uncommon Profits by Philip Fisher.
• One up on Wall Street and Beating the Street, both by Peter Lynch. They are easy to read, informative and entertaining.
• The Essays of Warren Buffett, a collection of Warren Buffett's annual letters to shareholders. Warren Buffett made his entire fortune investing, and has lots of very useful advice for real people who want to invest. Warren Buffet has these online and you can also read these online free: http://www.berkshirehathaway.com/letters/letters.html
• Buffetology, The New Buffetology and The Tao of Buffet, all by Mary Buffet and David Clark. These are basic books on the investment methods of Warren Buffett. The New Buffetology can be purchased on audio CD.
• The Secret Code of the Superior Investor, by James K Glassman. This is an excellent treatise on the importance of buy and hold.
• Motley Fool and The Tycoon Report, both excellent online publications
• www.kiplinger.com
• Wikinvest.com is great place to find information on companies and concepts in the market. It is also helpful to conduct due diligence on the investment information sources themselves. Check out the performance and advice of websites, newsletters and blogs. One resource to conduct this research is at Greedreviews.com

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