Pavan Nayak 13 Best Equity Research Books You Must Read to Decipher Equity
The stock market is filled with individuals who know the price of everything, but the value of nothing.
Phillip Fisher
And that’s the truth, isn’t it? Asset prices are written there on tons of websites. What we need to know is the value of that stock – the value of that company.
And how we make that possible? By understanding the business, going through its financial statements, decoding the financial ratios, and many such things.
And that’s where equity research books help us in understanding the fundamentals and the procedure for performing the afore-mentioned tasks.
We have selected 13 best equity research books for investors and analysts both. By the end of this article, you will have raw understanding of the content of these equity books.
Choose whichever you think can guide you the most in your investing journey.
So, if you are ready, let’s take a quick look over the list of the best equity research books and then discuss them later, one by one.
List of 13 Best Equity Research Books
- The Intelligent Investor
- You Can Be a Stock Market Genius
- Equity Research for the Technology Investor
- Best Practices for Equity Research Analysts
- Security Analysis
- The Smart Money Method
- Unholy Grails – A New Road to Wealth
- How Markets Really Work
- The Most Important Thing
- The Investment Checklist: The Art of In-Depth Research
- Valuation
- Alchemy of Finance
- Principles of Quantitative Equity Investing
1. The Intelligent Investor
This book was originally published in 1949 and its relevancy in the modern market era is such that you will find it on everyone’s list of best equity research books.
Written by the father of investing, Benjamin Graham, ‘The intelligent investor’ talks about long-term investing, and to be precise, value investing.
So, if you are a short-term investor or a day trader, then sorry this book is not for you, for that you can go with intraday trading books.
In this book, Mr. Graham has talked about long-term investment strategies and concepts of value investing. To make it simple he has used tons of examples. You should definitely give it a read as it is one of the best books on equity.
Take a look at what you will get inside the book:
2. You Can Be a Stock Market Genius
The book is the amalgamation of the experiences of Joel Greenblatt as a successful investor and his wisdom.
He has suggested various ways to become successful in investing arena. And time and again talked about the benefits of being an individual investor over professional money managers.
As an individual investor, you do not carry the load of maintaining an unnecessary portfolio of numerous stocks. And aside that, an investor also don’t have to worry about time restraints.
You can be in the market for longer periods of time and reap the fruit of actual investing. And the answer of how will you do it, is just a click away. ↓
3. Equity Research for the Technology Investor
By technology investor, the author mean investors who generally invest in technology stocks.
This work of Sudeep Bajikar is specially focused on the technology sector and how by investing in which, you can create fortunes.
The author will tell you how not just the technical skills, but also the behavioral issues while making investments make the equity research difficult and how to deal with it.
4. Best Practices for Equity Research Analysts
James J. Valentine is a former Morgan Stanley analyst and has vast knowledge in the field of equity research analysis.
This book is specially written for those who desire to be a research analyst.
Author has talked about how to better forecast and discussed techniques for stock-picking. You can consider it as a guide for equity research analysts.
5. Security Analysis
Another brain child of Benjamin Graham, the book Security Analysis is co-authored by David Dodd.
Like ‘The Intelligent Investor,’ this book also reflect light on value investing, for which Mr. Graham is renowned, but it contains actual events’ analysis that help you to figure out what’s next as History Repeats Itself.
One cannot deny that it is one of the best books on fundamental analysis, which in turn is the basis of advanced investment research.
6. The Smart Money Method
Stephen Clapham was a hedge fund manager and that’s why the last phrase on the book cover includes, ‘hedge fund pro.’
In his book, he shared step-by-step process of picking market-beating stocks; for how long maintain them in your portfolio and time of selling them to garner profit.
Read the book thoroughly so that you can get the insider secrets of advanced investment research. This equity book will provide you the smart money method that will help you to beat the market.
7. Unholy Grails – A New Road to Wealth
Unlike the value investing books, Unholy Grails talks about momentum investing, which is totally opposite of ‘buy and hold strategy.’
The author, Nick Radge, does not want you to follow herd mentality as investors are herded by many advisors.
He helps you to pick your strategy among the various ones that he analyzed & experimented in his journey.
So, Unholy grails is your new road to wealth as here you will learn about momentum investing, which will teach you to make profit from stocks’ short uptrends. NO clickbait.
Have a look inside the book:
8. How Markets Really Work
The book shows you the pattern of the market and hence proves that the market has not changed over the years; it remains what it is: a buy and sell place.
‘How Markets Really Work’ is written by financial experts and you can see their excellency when you go through this data-driven and research-backed book, full of gems.
Book is full of graphs and charts, which help you to get better understanding of the scenarios that the authors talk about, which is market functionality and how to make investment decisions based on that.
Have a look inside the book:
9. The Most Important Thing
Doesn’t matter whether you are an amateur or a seasoned investor, the most important thing is that this book take care of both parties and their intellect.
The author, Howard Marks, has lifetime of experience in the field of advanced investment research since he is a chairman at a capital management.
‘The Most Important Thing’ is a key to successful investing and also a disclaimer for the pitfalls you are going to face. It is kind of a memoir too, but the most important thing is that there are innumerable key takeaways.
Have a look inside the book:
10. The Investment Checklist: The Art of In-Depth Research
In-depth research is one of the most important aspects of successful investing and that is what Michael Shearn discussed in ‘The Investment Checklist.’
He offered you numerous checklists, which will help you to choose among various investment strategies.
The principles mentioned in the book are also considered by many investment managers.
Mr. Shearn tells you not to depend on mere isolated facts, instead want you to research about the investments on your own.
Have a look into the content of the book:
11. Valuation: Measuring and Managing the Value of Companies
As an investor or equity research analyst, you look after stocks. And what are stocks, if not companies?
And to help you in your mission, the book ‘Valuation’ offers you all lessons you need about corporate valuation.
Once you make sure that you have valued the company, its stock will make sure to be in your court.
The book is especially written for financial professionals and students of the field, but you can also get benefitted as it is available for all.
Have a look into the content of the book:
12. Alchemy of Finance
The financial markets dances as per trends and to possess right knowledge about them is actually a big win.
To make you winner-of-all-time, George Soros has his book, ‘Alchemy of finance,’ for you where he has shared practical and theoretical account of current financial trends.
Mr. Soros credits his ‘theory of reflexivity’ for his unique investment strategies, and you are going to know them in this book.
The president of a $4.2 billion net asset fund, Quantum Fund, has offered something to you, it would be worthy, right?
Have a look into the content of the book:
13. Principles of Quantitative Equity Investing
By the cover of the book, at least it is clear to you that this work of Sugata Ray is nothing but all about quantitative investing.
Also known as systematic investing, quantitative investing is an investment approach where you analyze data, mathematical models, and computer systems to place a profitable trade.
Mr. Ray has shared some of the best quantitative strategies in one of the best equity research books that will help you to invest in US equities using Equities Lab Software. Unless you are ready for advanced investment research, don’t go for this book.