Beginner's books

[pretender2k]

I am thinking about investing some money out of my poker winnings into the market. First I will fill a Roth for my wife and I and we are contributing full 15% to 401 but after that I would like to do some stock picking. I have been playing on Virtual Stock Market and doing well but that doesn't take much talent when the market is going up.

I would like to get some books on picking stocks. Everything from basics like what is P/E and how does it affect a stock and so on to maybe some general books. I do have an old copy of Beat the Street so any suggestions from there would be great. Also should I spend the money for a subscription to Incvestor's Business Daily. Someone suggested it to me. I don't mind spending some money to learn just want to get the best tools for the money I spend.

Thanks for all input.

[GeorgeF]

1) If instead of reading books you got a second job and invested all your money (including from the second job) in vangauard.com: 50% total market index and 50% Treasury inflation protected bonds you would most likely end up way ahead of where you would be if you spend your extra time 'studying' the markets.

2) This is a good starting guide to markets that will not cost you much money or time. Consider a trip to the best library in your area and see what they have there.

http://www.amazon.com/exec/obidos/tg/detail/-/0393057828/qid=1073575449//ref=sr_8_xs_ap_i0_xgl14/102-9022440-7276952?v=glance&s=books&n=507846

3) For free
Warren Buffetts collected wisdom:
http://www.berkshirehathaway.com/letters/letters.html

Try reading random annual statements on:
http://www.sec.gov

[JellyFishy]

Hi Pretender2k,

The best books for a beginner, in my opinion, is "A random walk down Wallstreet" by Burton Malkiel and also "One up on Wallstreet" by Peter Lynch.

There are a few more cool beginner's books that I've listed on my website stockmarket forum. My buddy who's a stockmarket whiz also hang out there, he operates a fair size private fund in NY, you can quiz him for more advanced stuffs, but never take anybody's tips too seriously.

[BadBoyBenny]

George is right that you're better off with indexes, etc. Read Maikel's book then if you are still set on picking your own stocks then start studying. The average stock picker does not beat the market after factoring in trading fees. However, it is possible and some do. I would invest a lot of time reading and even making practice picks and seeing how they do, this is not some thing to rush into. Beginner's books will not be enough to help you beat the market without luck.

Books that have helped me but have not been mentioned yet (i think) are

Phillip Fisher's Common Stocks Uncommon Profits and Benjamin Graham's "The Intelligent Investor" and "Securities Analysis"

The last one will give you a ton of info about different stats you can come up with by reading financial statements.