4 Must Read Investing Books

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4 Must Read Investing Books

If you are looking to improve your investment skills, I recommend you read one of these four books. All of them share one thing and that is a huge informational value . I bet they will have a positive effect on you. There are many books about trading and investments, but these belong to the best and are recommended also by others.

Do not forget that if investing were as easy as buying and reading a book, we would all be rich. Reading all books about trading in the world won’t guarantee you will be a good trader. Always use common sense.

1) MARKET WIZARDS

Market Wizards belongs to the list of investment book bestsellers. It consists of series of interviews with the best investors of today so that the reader gets a unique opportunity to take a peek into the minds of those, who made a great fortune with just a few bucks. You will also get a chance to reveal secrets which made these fortunes possible. Why is the book so popular? The reason is simple: because of the way of how it is written. Sensible information and detailed view of the trader’s minds written in an entertaining form will guarantee that you will not get bored easily.

It is not a trading tutorial, but if you are looking for motivation to keep learning, this might be the right book.

2) Reminiscences of a Stock Operator

Again, this is not a trading tutorial. The book contains autobiographical content from the author’s life.

This book tells us a partly real and partly fictitious story of a trader named Jesse, who represents the author himself. Gradually you will be dragged into the investor’s life for whom the trading has become everything. Personally, I think this is the best book on trading with autobiographical segments and will teach you valuable lessons from the world of investment. I am 100% sure that this book will interest you and that you will swallow every word from it.

3) Trade Your Way to Financial Freedom

Trade Your Way to Financial Freedom is worth reading especially due to the tips about money management you’ll find in it. It is one of the few books which can and will explain money-management and its principles to everyone. It is useful especially to new traders who are struggling to find their way around money-management. I would recommend this book to everyone.

Many traders are unaware of how money management is important. It is as crucial as technical analysis or fundamental analysis and might even be the most important of them all. Many people underestimate this and bad money management, not indicators, is usually responsible for the flawed trade system. Money management is the alpha and omega of your trading regardless of your system or indicators. Unless you are clear on money management topic, your trading is equal to a game of roulette.

Money-management is the way! ��

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4) The Intelligent Investor

The Intelligent Investor, written by the most important investment advisor of the 20th century, will tell you how to avoid mistakes as a trader or a broker. Warren E. Buffett named this book „the best book on investing ever written“ which means a lot. Doesn’t it? You will also learn which successful long term strategies you can use in your trading.

Timeless Graham’s philosophy is explained in a form appropriate even for laymen, therefore, you don’t need to be afraid that you would not understand it. Graham tries to navigate his readers towards caution and rationality. Reading this book will help you achieve your financial goals! Small thing to consider: there has been more than a million copies sold…

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More about the author Step

I’ve wanted to build a business of some kind and earn money since I was in middle school. I wasn’t very successful though until my senior year in highschool, when I finally started to think about doing online business. Nowadays I profitably trade binary options full-time and thus gladly share my experiences with you. More posts by this author

The top 5 must-read books on investing for beginners

One of the most frequent questions I get is, “I just started to learn how to invest, which books do you recommend on investing for beginners like us?”

I always believe that reading the right books — about all areas of life and not just about investing — is important because the best ones will shape your thinking and make a positive impact in your future. Therefore, I can be rather particular in choosing the right books to read.

So where do you start if you’re looking for the best books to read on investing for beginners? I’ve personally read countless books throughout my decade of investing, and while many can be a complicated read, some of the best ones share great knowledge and wisdom while written in way that is still easy for a beginner to comprehend.

So for today, I am going to share with you the top five books if you’re just starting out in learning how to invest. Here are the top five books on investing for beginners:

1. The Little Book of Value Investing

This book is one of the most easily digestible books on value investing you can find. You can probably finish it within a day, but don’t let its length deceive you — reading this book will give you an overall understanding of the philosophy of value investing, how it works, the intrinsic value of stocks, and margin of safety. If you have no clue about balance sheets, income statements, or financial ratios, the author also offers some basic explanations in the book.

He also lists 16 questions to ask yourself when analysing a company to better understand its competitive position and growth prospects. If you are new to investing, The Little Book of Value Investing should be one of the first books on investing to grab.

2. The Essays of Warren Buffett

When it comes to value investing, almost every investor will tell you to read Warren Buffett’s annual letters to Berkshire Hathaway shareholders as they contain the wit, wisdom, and some of the deepest insights you can find from the Oracle of Omaha himself. What makes The Essays of Warren Buffett one of the best books to read is because, instead of reading Buffett’s letters chronologically as you normally do, the author carefully organised his letters into specific individual investment topics.

Hence, you can read this book in any order – just go to a specific topic you’re interested in and learn more about what Buffett has to say about it. If you want to understand Warren Buffett’s philosophies on life, business, and investing, this book is a must-read.

3. One Up on Wall Street

Peter Lynch is said to be one of the best money managers of all time — his Magellan fund earned an average annual return of 29.2% from 1977 to 1990 (which is higher than Buffett’s average of 19.1%, although Buffett’s track record is much longer – from 1965 to 2020 and counting). In his book, One Up on Wall Street, Lynch shares how the average investor can become an expert in their own fields (circle of competence) and pick winning stocks. He talks about the concept of looking for investment ideas in your daily interactions and shares examples of how he found some of his best ideas in this way.

I also like his explanation of how he categorises stocks into six categories — slow growers, stalwarts, fast growers, cyclicals, asset plays, and turnarounds – and what to look out for in each category.

4. Common Stocks and Uncommon Profits

Philip Fisher is another mentor that greatly influenced Warren Buffett’s investment philosophy. Fisher focused on investing in high-quality, well-managed companies with strong growth drivers. In his book, he popularised the term ‘scuttlebutt’ which means to go on the ground to interact with a company’s employees, suppliers, customers, competitors, and management to find as much information as possible about its business.

The most useful part of the book is his list of 15 points to uncover high-quality companies with compelling growth prospects. Common Stocks and Uncommon Profits provides a great framework for investors who want to learn more about the qualitative aspects of investing in a stock.

5. How to Read a Financial Report

Investing is rather similar to treasure hunting. When hunting for treasure, you need a treasure map and the right tools to help you locate your treasure spot and decide whether what you find is worth a fortune (or not). When it comes to investing, a company’s annual report and its financial statements are like your treasure-hunting map and tools. Hence, it is crucial to understand the financial statements and what the figures are trying to tell you.

Personally, I think that John and Tage Tracy did a great job in their book, How to Read a Financial Report. They provide a clear explanation about the different financial statements, and examples of how the numbers and ratios are connected across the financial statements. If you are someone that doesn’t have a background in finance/accounting, this is definitely the book for you.

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Whether you’re an experienced trader or you’re just starting out with your first investment, it always pays to have a good understanding of the rules and trends, and to keep abreast of them as they change. Tips on technique and insights from those investors who have excelled can come in pretty handy, too. Read up to find out what others are doing and how and why they’ve been so successful before you invest your next dollar.

Best Overall: The Intelligent Investor

Before his death, “The Intelligent Investor” author Benjamin Graham was a renowned professor known as the godfather of investing, and Jason Zweig, The Wall Street Journal columnist, adds in some commentary in this revised edition.

This book takes a different approach from other investing books, although it’s not without positive encouragement. It won’t tell you how to make millions, but rather how not to lose your shirt. The authors impart must-read basics to get you started in investing and keep you going for a long time, from recommended strategies and how to analyze stocks to a comprehensive history lesson on the stock market.

Graham published the first edition of this book in 1949, and Buffett himself has called that version “the best book on investing ever written.”

Runner-Up, Best Overall: The Little Book of Common Sense Investing

John C. Bogle is credited with creating the first-ever index fund, so he surely knew a good bit about investing. He was also the founder of Vanguard Group, and it was rumored that he and Buffett were the best of friends. Buffet even gave his endorsement to Bogle’s book, saying that “investors large and small” should read it.

“The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns” takes the surprising approach that for many investors, the stock market is a lose-lose proposition. Bogle then explains what he learned to turn the odds in his favor. This isn’t his only book, but it’s the one that manages to cover his own personal innovative techniques and truths in a relatively short and easy read.

Best Essay Collection: The Essays of Warren Buffett

The fourth edition of “The Essays of Warren Buffett: Lessons for Corporate America” was released in 2020, and it’s a worthy read for learning from the very best. You’d be hard-pressed to name a more successful investor than Buffett, and he’s taken the time to share what he knows and has learned on the subject over the years.

The title addresses “corporate America,” but you can take that to include shareholders. The book offers an excellent explanation of the relationship between corporations and their shareholders, which makes it ideal for those new to investing. Plus, this collection of essays spans more than 50 years.

Best for Beginners: A Random Walk Down Wall Street

Investing doesn’t necessarily mean you devote hours on managing a broad-based, extensive portfolio, and Burton Malkiel knows that. “A Random Walk Down Wall Street” is invaluable reading for those who are trying to get a handle on their first 401(k)s. First, you have to learn to talk the talk, or at least understand what’s being said when someone else speaks it.

Malkiel’s book includes some handy definitions of investment terms, and it applies them to various investment strategies geared toward different stages in life. He emphasizes long-term investments rather than get-rich-quick schemes, and how to predict prices and avoid common mistakes. This is a revised edition of a book that’s been around for a while. “A Random Walk” has sold more than 1.5 million copies to date.

Check out our other reviews of the best investing books for beginners available on the market today.

Best Psychological: Thinking, Fast and Slow

Daniel Kahneman knows a thing or two about thinking — he’s a psychology professor at Princeton University and knows a lot about finances, having won the 2002 Nobel Prize in Economic Sciences.

His New York Times bestseller, “Thinking, Fast and Slow,” delves into how your thought processes can affect your success in investing. Everyone harbors their own little biases, sometimes subconsciously. Kahneman explains how to identify your own and lock them away so you can make investment decisions without their input, thinking clearly, rationally, and analytically. Note that this book isn’t just about investing, although that’s its focus. Kahneman also explains how biases can affect our everyday lives and other financial decisions.

Best Skill-Building: One Up on Wall Street

“One Up On Wall Street: How to Use What You Already Know to Make Money in the Market” throws down a challenge flag to beat the beast. Author Peter Lynch says it’s not only possible for newbie investors to do as well as — if not better than — the pros, but he maintains they already have everything it takes right at their fingertips.

Lynch believes that solid investment opportunities are everywhere. They litter the ground at our feet and we just have to stop walking so fast, pause in our everyday lives, and bend down to inspect the clutter so we can pluck out the most viable options. In doing so, we can beat the pros to the punchline and get in on an investment before the rest of the world realizes its potential.

“One Up on Wall Street” has sold more than 1 million copies since its release in 2000. The New York Times says Lynch, a renowned investor in his own right, is “in a league by himself.”

Read more reviews of the best books for learning stocks available to purchase online.

Best for Inspiration: Principles: Life and Work

This No. 1 New York Times bestseller is written by one of Time magazine’s 100 most influential people in the world. An average, middle-class kid who grew up in Long Island, Ray Dalio began his investment firm in his New York apartment. Forty years later, Fortune named his company, Bridgewater Associates, one of the five most important in the U.S.

“Principles: Life and Work” is part autobiography, part instructional. Dalio shares his secrets and insights and explains how businesses, individuals, and organizations can adopt them, including a set of rules for applying them to investing, life, your business, and your finances in general.

Take a look at other product reviews and shop for the best personal finance books available online.

Best Classic: The Only Investment Guide You’ll Ever Need

This book has been around for over 40 years and for good reason. The Los Angeles Times says it “actually lives up to its name.” Don’t worry — it’s not antiquated with advice from the 70s. It was recently updated in 2020 to keep pace with the current economy and trends.

Andrew Tobias doesn’t just address the wealthy investor. He offers tips and guidance for those with more limited capital, and he does it in a frank, easy-to-understand, and often humorous language. He dedicates the book to his broker, who, he says, “from time to time made me just that.” This book has helped educate over 1 million readers to date.

Best for Real Estate Investing: The Book on Rental Property Investing

If you’re looking to profit off of rental properties, opt for this great starter book, “The Book on Rental Property Investing: How to Create Wealth and Passive Income Through Smart Buy & Hold Real Estate Investing.” In almost 400 pages, author Brandon Turner breaks down the tips and tricks you’ll need to become a successful rental property investor. Reviewers praise the practical, “how-to” style of this investment book, making it suitable for both beginners and experts. You’ll learn about the author’s four easy strategies, how to find incredible deals, ways to pay for your rentals, why so many real estate investors fail, and more. You can trust Turner’s advice, too, as he’s an active real estate investor and co-host of The BiggerPockets Podcasts, one of the top business podcasts today.

Need some more help finding what you’re looking for? Read through our best real estate investing books article.

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