5 books you should read before you invest
To the layman on the street, the stock market always seemed complex and full of uncertainty. Investing has never been on their radar. Some South-East Asian countries have regulation for a portion of employees salaries to be taken out for investment into their retirement fund. In turn, this money would be invested into certain funds etc. This action would be the closest some of us get to “investing”.
These days it is not hard to get into investing. The wonders of technology have brought us online brokers and Robo-advisors to make investing more accessible for us. However, before one gets into action, one should prepare themselves. As Benjamin Franklin said, “An investment in knowledge pays the best interest.”
We decided it would be best to share what we believe to be the top 5 books for beginners in investing. We did not rank the books in this list in any particular order. However, we do highly recommend the last one.
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
Burton Malkiel evaluates the full range of investment opportunities, from stocks, bonds, and money markets to real estate investment trusts and insurance, homeownership, and tangible assets such as gold and collectables. This edition includes new strategies for rearranging your portfolio for retirement, along with the book’s classic life-cycle guide to investing, which matches the needs of investors in any age bracket. This book was established as the de facto book to read before establishing your portfolio.
One Up On Wall Street: How To Use What You Already Know To Make Money In The Market
America’s most successful money manager tells how average investors can beat the pros by using what they know. According to Lynch, investment opportunities are everywhere. From the supermarket to the workplace, we encounter products and services all day long. By paying attention to the best ones, we can find companies to invest in before the professional analysts discover them. Lynch offers easy-to-follow advice for sorting out the long shots from the no shots by reviewing a company’s financial statements and knowing which numbers count. Above all, an easy to understand read for beginners in investing.
The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns
The Little Book of Common Sense Investing is the classic guide to getting savvy about the market. Legendary mutual fund pioneer John C. Bogle reveals his key to getting more out of investing: low-cost index funds. Bogle describes the simplest and most effective investment strategy for building wealth over the long term: buy and hold, at meagre cost, a mutual fund that tracks a broad stock market Index such as the S&P 500. In conclusion, a very common sense yet unique approach to investing.
Common Stocks and Uncommon Profits and Other Writings
Widely respected and admired, Philip Fisher is among the most influential investors of all time. His investment philosophies, introduced almost forty years ago, are studied and applied by today’s financiers and investors. Many regard his philosophies as gospel. This book is invaluable reading and has been since it was first published in 1958. Don’t just take our word for it. Even Warren Buffet has excellent things to say, “I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits. A thorough understanding of the business, obtained by using Phil’s techniques, enables one to make intelligent investment commitments.”
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel
The greatest investment advisor of the twentieth century, Benjamin Graham, taught and inspired people worldwide. Graham’s philosophy of “value investing” — which shields investors from substantial error and teaches them to develop long-term strategies — has made The Intelligent Investor the stock market bible ever since its original publication in 1949.
Over the years, market developments have proven the wisdom of Graham’s strategies. While preserving the integrity of Graham’s original text, this revised edition includes updated commentary by noted financial journalist Jason Zweig, whose perspective incorporates the realities of today’s market, draws parallels between Graham’s examples and today’s financial headlines, and gives readers a more thorough understanding of how to apply Graham’s principles. Above all, this book is should be at the top of your list.
We certainly hope you enjoyed this list. While we strive to ensure there is no bias. We cannot help recommending Benjamin Graham’s book first. In conclusion, one should seek as much knowledge before embarking on their investment journey.
