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Best Books on Fundamental Analysis

Want to read best books on fundamental analysis Well you have landed on the right article

Fundamental analysis is a method of evaluating securities that gives equal weight to both the financial and economic performance of a company.

Fundamental analysis is based on an evaluation of the financial statements reported by companies and other publicly traded entities.

These statements include income statements, balance sheets and cash flow statements. The financial statements are prepared in accordance with generally accepted accounting principles (GAAP).

The process involves analyzing these statements to determine whether the company's earnings are growing at a rate that justifies its stock price.

 It also requires looking at the company's business model, management and competition in order to determine whether the company is likely to be profitable in the future.

Our Top Picks

Best Books On Fundamental Analysis

1. The Intelligent investor - Benjamin Graham

The Intelligent investor is a book written by Benjamin Graham, who is considered to be one of the fathers of value investing.

The book was first published in 1949 and has been revised several times since then.The book's central thesis is that investors should focus on buying stocks at bargain prices

 (i.e., low P/E ratios), investing in quality companies with sustainable competitive advantages and avoiding market timing.

The book provides detailed information on how to analyze stocks to determine whether they are cheap or expensive based on earnings, dividends and other factors.

It also explains how to use margin of safety in order not to lose money even if an investor's stock selection turns out to be wrong.

Features :-

  • Price of the book: ₹300
  • Goodreads Rating: 4.2

Video

2. Stocks for the Long Run - Jeremy Siegel

Jeremy Siegel is a professor of finance at the Wharton School of Business.
He is the author of several books on stocks, including Stocks for the Long Run:

The Definitive Guide to Financial Market Returns and How to Attain Them.
The key takeaways from Siegel's book include stocks are more volatile than bonds

But they have higher returns over long periods of time. Value stocks have higher returns than growth stocks over long periods of time.

Also, smaller companies have higher returns than larger companies over long periods of time when adjusted for risk (beta).

Features :-

  • Price of the book: â‚¹2,763
  • Goodreads Rating: 4.1

Video

3. The essays of Warren Buffett

Warren Buffett is a legend in the world of investing. He's one of the richest people in the world, and he's also one of the most successful investors ever.

Buffett is known for his long-term investment strategy.

He's been able to consistently make money over many decades by buying quality stocks at good prices and holding them for a long time

.Mr. Buffett believes that the most important investment you can make is in yourself.

He stresses the importance of learning how to learn, how to read and how to think independently.

He also believes that the most important thing you can do is spend time with people better than you are or who will challenge you.

Features :-

  • Price of the book: â‚¹975
  • Goodreads Rating: 4.5

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4. Learn to earn - Peter Lynch

Peter Lynch is one of the most famous investors in the world. He was the manager of the Fidelity Magellan Fund from 1977 to 1990,

When it beat the S&P 500 by a wide margin. During that time, he beat the S&P 500 in 15 out of 17 years.

In this book, Lynch explains that any investor can make money if they follow some basic rules. These rules include:

  • Investing in companies with products or services you know and use
  • Buying stocks at a discount from their intrinsic value
  • These principles can help anyone become an effective investor, regardless of whether they have a lot of money or not.

Features :-

  • Price of the book: â‚¹268
  • Goodreads Rating: 4

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5. Security Analysis - Benjamin Graham and David L. Dodd

Security Analysis is a book written by Benjamin Graham and David Dodd, considered the father of value investing.

It was first published in 1934 by McGraw Hill and has gone through multiple editions since then.

The book is considered one of the best investment books ever written and has been used by generations of investors to help them develop their own investing strategies.

The book discusses how security analysis can be used to evaluate stocks and determine their fair value,

Which in turn helps an investor determine whether a stock is worth buying or not.

Features :-

  • Price of the book: ₹835
  • Goodreads Rating: 4.3

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6. The theory of investment value - John Burr Williams

In the 1930s, John Burr Williams was one of the first economists to question the idea that stocks always went up in value.

In his book The Theory of Investment Value, he argued that a company's earnings and dividends would eventually be reflected in its stock price,

 Which would then settle at a point where investors were willing to pay for those profits.

This idea became known as the dividend discount model, and it has been used by many investment analysts ever since.

Dividends are payments to shareholders that represent their portion of the profits from operations.

 They may be paid out on a quarterly basis or annually (as with many utility companies).In some cases, dividends are paid out only when there are profits available for distribution;

Some companies don't pay dividends at all and instead reinvest all their profits back into the business (this is called retaining earnings).

Features :-

  • Price of the book: ₹1,246
  • Goodreads Rating: 3.9

Video 

7. Fundamental Analysis for dummies - Matt Krantz

Fundamental Analysis For Dummies is a book that will help you learn the ins and outs of fundamental analysis.

The author, Matt Krantz, is a jouranlist who has been writing about stocks for over 30 years.

In this book he breaks down the basics of fundamental analysis in an easy-to-understand way.

He provides real life examples throughout the book to help you understand how this type of analysis works in practice.

Krantz starts by explaining why you should use fundamental analysis as opposed to technical analysis (or TA).

He then goes on to explain what it means when analysts talk about earnings per share (EPS), revenue growth, debt levels and more. This section is very helpful if you are new to investing and want to learn more about stocks before investing in them.

Features :-

  • Price of the book: ₹1,823
  • Goodreads Rating: 3.9

8. Ratio Fundamental Analysis - Axel Tracy

The book Ratio Fundamental Analysis written by Axel Tracy is a good read for the investors.

This book provides the readers with an insight on how to analyze stocks using fundamental analysis.

The book starts off with the basic concepts of ratio analysis and then moves on to more advanced concepts like price-to-book,

 Price-to-sales and various other ratios that can be used to analyze the stocks.

The author has also provided some examples to explain how these ratios are calculated and how they can be used in stock valuation.

 The author has covered both domestic and global companies in this book. You will also find some sample portfolios which can help you understand how you can use different types of ratios for investment decisions.

Features :-

  • Price of the book: ₹989
  • Goodreads Rating: 3.7

9. Getting Started with fundamental analysis - Michael C. Thomsett

The book Getting Started with Fundamental Analysis by Michael C.Thomsett is a great introduction to the world of fundamental analysis.

It's not just for beginners, but for those who have been following the market for years and want to improve their knowledge.

This book will give you a solid understanding of how to conduct fundamental analysis and apply it to stocks, bonds, mutual funds, ETFs, options, futures contracts and real estate investments.

It also provides a simple framework for making investment decisions based on fundamental factors in the market environment.

Features :-

  • Price of the book: ₹1,430
  • Goodreads Rating: 4.4

10. Common stocks and uncommon profits - Philip Fisher 

In common stock investing, Philip Fisher was a pioneer. He was one of the first to recognize the importance of quality stocks,

nd he developed an investment strategy based on a careful analysis of each company's business.In his book Common Stocks and Uncommon Profits (1958),

 Fisher provided his readers with an overview of how to analyze a company's financial statements, determine its growth prospects, and make investment decisions based on fundamental analysis.

In this book Fisher introduced the concept of "scuttlebutt investing" which involved studying news about companies before buying their stock to get an idea about

Whether it was undervalued or overvalued based on what he learned from newspapers, annual reports, etc.

Features :-

  • Price of the book: ₹975
  • Goodreads Rating: 4.1

Video 

11. Fundamental analysis and position trading - Thomas Bulkowski

Thomas Bulkowski has been a trader since the 1970s, and he's written several books on the subject of technical analysis.

The purpose of this book is to provide a broad overview of technical analysis and fundamental analysis and how they are related.

The first section is devoted to fundamental analysis, which is the study of macroeconomic factors such as interest rates, inflation, and government policies that can affect the price of securities.

The second section covers technical analysis, which focuses on identifying patterns in stock prices and trading volume.

In addition to covering these two methods of analysis, the book also includes chapters on market timing, volatility cycles, and option theory.

Features :-

  • Price of the book: ₹5,024
  • Goodreads Rating: 4.1 

I hope you liked our article on best books on fundamental analysis , if you have any comments or suggestions do share them in the comments below. 

Frequently Added Questions (FAQs)

Q1 Is fundamental analysis top-down?

The basic principle behind Fundamental Analysis is that it takes into consideration all the factors which influence the price of a security.

This includes the macroeconomic factors, industry-specific factors, company-specific factors and financial ratios. Hence, it is not top-down in nature.

Q2 Which are the best fundamental analysis books for beginners?

There are many books on fundamental analysis that you can read to learn more about it. Here are some of the best books for beginners:

  • Value Investing from Graham to Buffett (Irwin Series in Finance) by Lawrence A. Cunningham and John A. Tracy

  • The Intelligent Investor by Benjamin Graham

  • Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett the World's Most Famous Investor by Mary Buffett and David Clark

Q3 Is fundamental analysis hard?

Fundamental analysis can be difficult because you have to have a firm grasp on accounting concepts like earnings per share and balance sheets. There are many resources available to help you learn these concepts, including books and online courses.

Q4 How do you study fundamental analysis?

The first step to understanding fundamental analysis is to know what it is. Fundamental analysis is the study of a company's financial performance, management and other factors that affect its stock price.

The goal of this type of analysis is to determine whether the price for a security is undervalued or overvalued.

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Currently working as an Editor in Chief with Ankuraggarwal.in, he is managing all the ins and outs of the content management process and editorial operations. Having an experience of 8 years in the publishing/ e-solution industry, he manages a small freelancing team of fellow editors and has worked with several domains including academics, healthcare, lifestyle and technical writings. He is a stickler for accuracy and loves to read noir-fiction and binge-watch anthologies.

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