Book Recommendations for Investing in Stocks

When The Winner’s Circle II: How Ten Stockbrokers Became the Best in the Business was published in the mid 1990’s, Anil Jethmal saw his account base expand rapidly practically overnight. Many of his clients would ask for additional book recommendations to learn more about stock market investing. Over 20 years later, Anil’s recommendations then are the same as they are now.

lynch buffett

For the novice, Anil Jethmal recommends:
One Up on Wall Street
Written by Peter Lynch, famed former head of Magellan Funds at Fidelity Investments, the book emphasizes that individuals should buy stock “in what you know”. As an example, Lynch recounts that his interest in Dunkin Donuts stock was based on the fact that “he really liked the coffee”. After analyzing the stock, he took a sizable position in the company. His investment yielded over a 1000 % return. The concept is that an individual, in his or her daily life, will spot a trend or see an opportunity well before a Wall Street analyst might.
The Magellan Fund, under Lynch’s leadership from 1977 to 1990, averaged an annual 29.2% return…more than doubling the S&P 500 return.

For those with an intermediate understanding of financial markets, Anil Jethmal recommends:
Security Analysis
Written by Benjamin Graham and David Dodd and originally published in 1934, the philosophy within those pages still hold true today. Not a quick read at over 700 pages, the overriding theme is that one should look for value in stocks with a large margin of safety.
A professor at Columbia University, Graham gave student Warren Buffett an A+ in 1951. And, to this day, Buffett applies the Graham/Dodd criteria to every investment he makes: “The basic ideas of investing are to look at stocks as businesses, use the market’s fluctuations to your advantage, and seek a margin of safety. That’s what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing.”

For those who have an advanced understanding of financial markets, Anil Jethmal recommends:
Along with the two previously mentioned works, the best thing one can do is to read lots of financial statements (income statements, balance sheets, 10Ks, insider transactions, etc.). There is no book that can replace going to the source and analyzing the actual numbers.


Opportunities and Challenges Surveyed

Anil Jethmal pic
Anil Jethmal

A Bowdoin College graduate, Anil Jethmal provides investment services to a number of affluent private individuals. As a private wealth management consultant, Anil Jethmal is responsible for meeting his client’s specific goals by delivering a wide range of financial products and services. The ability to recognize current challenges and opportunities in the investment field is key to achieving these financial targets.

In a survey conducted by Capital Group, more than 400 financial advisors were asked to answer questions about what they consider to be the biggest issues and opportunities facing their companies. When asked about the biggest challenge they’re facing, the number one response, by a huge margin, was client issues, some of whom are anxious about the future and others with unrealistic expectations. The new fiduciary standard rule from the Department of Labor and market volatility were the second and third most common answers, respectively.

When asked about their biggest opportunities, advisors again pointed to clients. They see value in developing business relationships with new clients, including millennials, female investors, and young families. The participants also saw opportunity in the need for financial planning services, allowing them to expand their services and grow their businesses.