5 Stock Trading Books Every Investor Must Know - Book Selection Guide for 2025

The right investment books can completely change the perspective of beginner investors. Thailand has a wide range of investment books that explain fundamentals up to advanced strategies. This article will present the 5 most valuable titles for those who want to understand the world of stock investing and develop their own system for learning how to invest in stocks.

Laying the Foundation: Books on Stock Cultivation for Sustainable Results

This book is written by Khun Kavi Chukijkasem, an expert in value investing, widely recognized in the Thai financial industry. Khun Kavi presents the principles of Value Investing in an easy-to-understand language.

Why read: Suitable for beginners just starting to learn investing. His thinking approach is different but comprehensible without confusion. The book covers the basics thoroughly and helps plan future investments.

Key content: The book covers topics from a company’s competitive ability, quantitative analysis such as gross profit margin, return on equity, to stock valuation using P/E and P/BV ratios.

Advantages: All examples are Thai stocks, so readers can immediately apply what they learn. Clear illustrative examples are included.

Limitations: The content is quite basic and not deep enough for experienced investors.

Understanding the Principles: The Intelligent Investor

Benjamin Graham, the father of value investing, wrote this book to explain the correct attitude towards investing. First published in 1949, but its principles remain relevant today.

Why read: Suitable for those with some basic knowledge. The content not only explains but also provides actionable investment steps.

Key content: Investors are divided into two types: defensive investors (with limited knowledge and low risk appetite) and aggressive investors (with extensive knowledge, willing to dedicate time, seeking high returns). Graham’s principle is to analyze with reason, not emotion.

Author’s achievement: Graham achieved an average return of 20% per year between 1936–1956, while the market averaged 12.2% per year.

Advantages: Clear and traditional investment system.

Limitations: The language can be difficult to read; not very suitable for beginners. The book was written over 70 years ago, so some concepts may be outdated.

Learning from Crises: Mastering Stock Strategies During Market Crashes

Dr. Nivesh Mewachiraworakorn, a pioneer in promoting value investing in Thailand, wrote this book based on his direct experience.

Why read: Suitable for all beginner investors. Written more as a storytelling of experiences rather than academic teaching. Content is well-organized into clear categories.

Key content: Dr. Nivesh teaches that before investing, one must study what to look for. During crises, hidden opportunities may arise. VI investing emphasizes buying good businesses that can last long, diversifying risk, and letting management run the business.

Holding strategy: Dr. Nivesh often holds stocks for over 10 years because if the business remains good, there’s no need to sell. It’s a business owner’s approach.

Advantages: All examples are Thai stocks, practical knowledge, helps find your own investment style.

Limitations: The content is quite basic and does not delve into advanced stock trading techniques.

Finding Gems: One Up On Wall Street

Peter Lynch, manager of the Magellan Fund, widely believed that amateur investors can succeed. Co-authored with John Rothchild.

Why read: Covers nearly all aspects of stock investing. Stocks are categorized into 6 types: slow growers, stalwarts, fast growers, cyclicals, turnaround stocks, and asset-heavy stocks.

Key content: Lynch emphasizes finding high-potential stocks that are not widely known. The strategy is called Tenbagger—stocks with the potential to generate 300% profit in a investment cycle.

Performance: Lynch managed the Magellan Fund for 13 years, growing from $18 million to $14 billion.

Advantages: Comprehensive, rich with diverse experiences, easy to understand, and engaging to read.

Limitations: Examples are all foreign stocks; the Thai translation’s phrasing can sometimes be hard to understand.

Advanced Techniques: Buffettology

Mary Buffett (Warren Buffett’s former daughter-in-law) and David Clark reveal investment principles that Warren Buffett has only taught to family members.

Why read: Suitable for investors with some experience. The content is highly interesting, such as Buffett’s alchemy of money or when to speculate.

Key content: The book is divided into two parts: the first assesses stocks qualitatively; the second involves calculations and deeper analysis. Buffett invests through a business partnership perspective, combining ideas from Graham, other experts, and his own experience, including DCF (Discounted Cash Flow) analysis.

Advantages: Clear and well-organized content; most equations involve variables that are easy to understand.

Limitations: Best suited for long-term investing (10+ years); requires extensive analysis and factors, making it quite complex.

How to Choose the Right Stock Investing Book

Why do beginners need to read books?

Investors preparing to enter the stock market often read stock investing books from various sources as a basic shield. Each source shares mistakes that investors should avoid. The more information you study, the more you seem to avoid errors others have made.

However, can you invest without reading books? The answer is “difficult” because education is unavoidable. If you don’t want to read books, you can try investing through mutual funds managed by professionals. But the best way is still to read stock investing books.

Choosing books written by Thais

It is recommended that beginner investors choose to read books on stock investing written by Thais because:

• Language and style: Uses Thai language that is easy to understand, no translation needed.
• Relevant examples: Most examples are Thai stocks, aligning with the Thai stock market context.
• Accuracy: Translated books may sometimes distort the content.

Foreign books are also good, but better after understanding the basics and when you want to invest in foreign stocks.

Strategies to Beat the Stock Market

Long-term stock investing involves three main components:

1. Market Timing: Choosing the right entry and exit points—buy low, sell high. Applicable for both long-term and short-term, up and down markets.

2. Asset Selection: Picking assets with long-term upward trends. Wrong choices can lead to inflation eroding your capital.

3. Asset Allocation: Diversifying among bonds, stocks, real estate, and cash in appropriate proportions. Helps reduce volatility and grow the portfolio over time.

The 5 books mentioned cover all three components.

Starting Your Investment: Practical Steps

After reading stock investing books, start with the easier steps:

• Increase knowledge: Begin with basic books to build foundational understanding.
• Practice trading: Use simulation apps with virtual accounts to practice before real trading.
• Start with basics: Invest in domestic stock indices and continue learning.
• Expand scope: When confident, explore foreign stocks and other investment tools.

Summary

Reading stock investing books does not guarantee profits but prepares your mindset and tools. Every investor has their own style and way of thinking. From studying these 5 books, you will discover which investment approach suits you best and develop a sustainable investment system.

To get started, it is recommended to begin with “เพาะหุ้นเป็นเห็นผลยั่งยืน” by Khun Kavi Chukijkasem to lay the foundation, then gradually explore other titles. Reading each book will help you find and develop your own investment style sustainably.