Discover the best books for fundamental analysis and learn how to make intelligent and profitable long-term investments.
Fundamental analysis is an investment strategy that stresses the importance of learning to read and interpret a company’s financial statements. The foundational principle of the theory is that the most successful investors make their decisions based on facts, not fads.
They study annual reports, corporate culture, competitors, cash flow, and earnings to evaluate the health of a business and buy stocks when they have the most potential for return on investment. Learning fundamental analysis strategies lets you take the guesswork out of building a lucrative stock portfolio.
- Here Are The 13 Best Books for Fundamental Analysis
- 1. The Intelligent Investor by Benjamin Graham and David Dodd
- 2. The Essays of Warren Buffett by Lawrence Cunningham
- 3. Learn to Earn: A Beginners Guide to the Basics of Investing by Peter Lynch
- 4. Common Stocks and Uncommon Profits by Phillip Fisher
- 5. Fundamental Analysis for Dummies by Matthew Krantz
- 6. Buffettology by Mary Buffett
- 7. Stocks for the Long Run by Jeremey Siegel
- 8. The Theory of Investment Value by John Burr Williams
- 9. The Little Book that Still Beats the Market by Joel Greenblatt
- 10. Getting Started in Fundamental Analysis by Michael C. Thomsett
- 11. One up on Wall Street by Peter Lynch
- 12. Security Analysis Principles and Techniques by Benjamin Graham and David Dodd
- 13. Fundamental Analysis for Beginners by AZ Penn
Here Are The 13 Best Books for Fundamental Analysis
1. The Intelligent Investor by Benjamin Graham and David Dodd
Author Benjamin Graham is known as “The Father of Value Investing,” and this is his seminal work on the subject. As a young investor, 25-year-old Graham made nearly half a million dollars a year. Then, the stock market crash of 1929 wiped out nearly all of his earnings. Rather than giving up, Graham poured his efforts into researching sound investment strategies that could withstand market volatility. The Intelligent Investor is the result of his work.
Published in 1949, The Intelligent Investor is a classic that has become the standard of value investing. Because the language can be somewhat historical, it is not a light read. However, the most recent edition includes commentary from author and investor Jason Zweig, whose insights and recent real-world examples help clarify the original text for modern readers. Looking for more educational books to binge on a weekend? Check out our round-up of the best books for computer science! You can also search for our best book guides using our search bar.
“Obvious prospects for physical growth in a business do not translate into obvious profits for investors.”Benjamin Graham, The Intelligent Investor
2. The Essays of Warren Buffett by Lawrence Cunningham
While “The Oracle of Omaha,” Warren Buffet, has never authored a book, he has written a great deal on what makes a company a sound investment. Considering Buffet has amassed billions of dollars through wise investing, his thoughts on the subject are widely accepted as invaluable advice. The Essays of Warren Buffett is a collection of the billionaire’s annual letters to the shareholders of Berkshire Hathaway. Together, they offer the layman a crash course in sound business practices and how they affect valuation and investment strategy.
“Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.”Warren Buffett, The Essays of Warren Buffet
3. Learn to Earn: A Beginners Guide to the Basics of Investing by Peter Lynch
Peter Lynch, former mutual fund manager at Fidelity, is an icon in the world of finance and is considered one of the most successful investors in history. His book, Learn to Earn, is an approachable, entertaining guide to sound investment strategies that even high school students can understand.
Lynch stresses that high schools should teach young people investing principles and how to use them to build a solid financial foundation. This book is a good entry point for any beginner because it does not require a lot of mathematical prowess or prior knowledge, just an interest in stock investing and money management. It is not a complete guide but a handbook for those who want to get started in stock analysis.
“Debt is saving in reverse. The more it builds up, the worse off you are.”Peter Lynch, Learn to Earn
4. Common Stocks and Uncommon Profits by Phillip Fisher
Phillip Fisher was one of the first investors to stress a “buy and hold” long-term investment strategy. He is considered a pioneer of fundamental analysis, and his authoritative book, Common Stocks and Uncommon Profits has long been considered essential reading. Common Stocks and Uncommon Profits breaks Fisher’s investment strategy down into 15 key points. Together, they form a method of assessing a company’s characteristics and understanding how they affect its investment potential.
“A company might be an extremely efficient manufacturer or an inventor might have a product with breathtaking possibilities, but this was never enough for a healthy business.”Phillip Fisher, Common Stocks and Uncommon Profits
5. Fundamental Analysis for Dummies by Matthew Krantz
As a nationally recognized financial journalist and editor, Matthew Krantz is adept at making Wall Street accessible for his readers. Fundamental Analysis for Dummies is a solid introduction to growth stocks and offers simple explanations of complex topics like ratio analysis and security analysis.
Fundamental Analysis for Dummies is easier to read than many investment books, so it is an excellent reference to have on hand, even for more experienced investors. New investors will appreciate its straightforward language and real-world examples. Purchase of the book unlocks additional web content, and those interested in technical analysis will appreciate the companion book Technical Analysis for Dummies.
“While faddish stock-picking systems come and go, fundamental analysis has been around for decades. The ability to pore over a company’s most basic data and get a good idea of how a company is doing, how skilled the management team is, and whether or not a company has the resources to stay in business is a valuable skill to have.”Matthew Krantz, Fundamental Analysis for Dummies
6. Buffettology by Mary Buffett
Warren Buffett’s former daughter-in-law, Mary Buffett, is frequently asked to reveal her private experiences with the finance guru and expose the inner workings of the Buffett family. However, as a successful businesswoman in her own right, she felt that what the world needed to hear was all she had learned from years of studying Warren Buffett’s investing habits.
Buffettology is an insider’s look at how the Wall Street legend made billions in the stock market. Mary Buffett’s subsequent books, The New Buffettology and The Buffetology Workbook offer additional step-by-step guidance for value investing.
“As humans, we are susceptible to the herd mentality, and so we often fall victim to the emotional vicissitudes that propel the stock market and feed enormous profits to those who are disciplined.”Mary Buffett, Buffettology
7. Stocks for the Long Run by Jeremey Siegel
Jeremey Siegel is an internationally acclaimed expert in finance and a frequent guest on national news outlets. He served for several years as the head of economics training for J.P. Morgan and is now an academic director at the Wharton School of Business. His well-respected book, Stocks for the Long Run, is a data-driven manual for long-term investing and a must for serious investors in value stocks.
This helpful book contains charts and tables that back up Siegel’s investment strategy with hard numbers and clear examples. Siegel covers financial market behaviors like historical trends, future forecasting, and rare “black swan events” like the recent pandemic. It also touches on international investment, making this one of the best fundamental analysis books for beginners and experienced investors.
“Although those who wait long enough will eventually recoup losses on a diversified portfolio of stocks, buying stocks at or below their historical valuation is the best way to guarantee superior returns.”Jeremey Siegel, Stocks for the Long Run
8. The Theory of Investment Value by John Burr Williams
Renowned economist John Burr Williams originally wrote this book as his Ph.D. thesis at Harvard in 1938. In the decades since, it has become the definitive guide for learning the basics of fundamental analysis. In the Theory of Investment Value, Williams proposes that every business has an intrinsic value that can be calculated based on the present value of the company’s future dividends, as opposed to its earnings.
He suggests that determining this intrinsic value is the key to wise investing. Because this book is heavy in theory and mathematical calculations, and because it was originally written for an audience well-versed in economic principles, it can be a difficult read for a beginner. Still, it is a classic for a good reason, and worth the effort.
“To buy when a security goes below its true worth, and to sell when it goes above it is not enough to constitute wise investment.”John Burr Williams, The Theory of Investment Value
9. The Little Book that Still Beats the Market by Joel Greenblatt
This short, humorous book is easy to read and does an admirable job of explaining complex investment ideas in simple terms. The Little Book that Still Beats the Market requires only basic middle-school math, so it is an approachable entry point for beginners interested in value investment and personal finance. More experienced investors will appreciate it as a quick and easily digestible refresher on the basics of fundamental analysis.
“Choosing individual stocks without any idea of what you’re looking for is like running through a dynamite factory with a burning match. You may live, but you’re still an idiot.”Joel Greenblatt, The Little Book that Still Beats the Market
10. Getting Started in Fundamental Analysis by Michael C. Thomsett
Michael Thomsett is a successful investor who has written dozens of books and articles on investment strategy. In Getting Started in Fundamental Analysis, he introduces the basics and includes tools to help beginning investors put those theories to use. From where to find and how to read financial information online to tracking income ratios, Thomsett has created a practical guide to stock market strategy. The book also discusses understanding a business’s health and potential using indicators beyond financial statements.
“Financial statements are a starting point in analysis. They are most useful when they highlight questions you need to ask to get more details.”Michael C. Thomsett, Getting Started in Fundamental Analysis
11. One up on Wall Street by Peter Lynch
In One up on Wall Street, mutual fund guru, Peter Lynch, shares his expertise on long-term investing. This is an easy-to-read, conversational-style book where Lynch recounts his successes, mistakes, and common market myths. He stresses his theory that investing in companies you know and understand is best. Lynch suggests that you pay close attention to the products you use and interact with daily, then invest in the ones that stand out as exceptional.
If you can find those products before the analysts, Lynch claims, you’ll wind up with a much sought-after tenbagger – a stock that grows tenfold from the initial investment cost. A New York Times bestseller with over a million copies sold, One up on Wall Street is a can’t-miss.
“Actually Wall Street thinks just as the Greeks did. The early Greeks used to sit around for days and debate how many teeth a horse has. They thought they could figure it out by just sitting there, instead of checking the horse.”Peter Lynch, One up on Wall Street
12. Security Analysis Principles and Techniques by Benjamin Graham and David Dodd
Considered one of the most influential investment books of all time, this classic is a must for anyone serious about the stock market. The newest edition features a forward by Warren Buffett, who confesses that he has read Security Analysis Principles and Techniques at least four times and chapter introductions from some of Wall Street’s leading money managers.
Written in 1940, Graham’s sound advice has stood the test of time and every imaginable market condition. Owing to its age, this book is dense and complex. Still, for those with some prior knowledge of finance, it is an invaluable and comprehensive guide to selecting and managing investments. If you enjoyed our guide to the best books for fundamental analysis, we have many more scientific books round-up that you can check out such as the best books for quantum physics.
“Astute observers of corporate balance sheets are often the first to see business deterioration”Benjamin Graham, Security Analysis Principles and Techniques
13. Fundamental Analysis for Beginners by AZ Penn
As the title states, this book is designed for people who are brand new to long-term investing with fundamental analysis strategies. Because it was written with the beginner in mind, it has a comprehensive glossary and quizzes for each chapter that aid in understanding and knowledge retention.
If you’ve never read an investment book, Fundamental Analysis for Beginners is the perfect place to start. It covers common rookie investor mistakes, how to accurately assess the health of a business, as well as what to look for and what to avoid when building your portfolio. With the purchase of this book, readers also gain access to additional information on the author’s website.
“So if you don’t excel at math, think accountancy is boring, or don’t have a ‘head for numbers,’ it doesn’t matter – as long as you can use a spreadsheet and calculate percentages, you can learn to invest wisely and productively.”AZ Penn, Fundamental Analysis for Beginners
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