INVESTMENT BOOKS TO READ

best books to learn about investing

Business giant Warren Buffet, who needs absolutely no more introduction, quoted “Never depend on a single income, invest to create a second source”. It is never a bad idea to invest, especially when you are earning more than your kitchen money. 

Visionary people invest in stocks, cryptocurrency, mutual funds, bonds, and other resources to maximize their income. If you are someone who is inspired by the success stories of these investment tycoons and are thinking to create your investment portfolio, take a pause. 

Investment is not as straightforward as it seems. To be a successful investor, you should be smart and learned enough. You should be aware of where to invest, how much to invest, and for how long to invest. One way to prepare your investment plan is by reading investment books.  In this piece, we have covered the top 5 books on investment which will give you a head start to your investment career.

THE INTELLIGENT INVESTOR

Benjamin Graham’s masterpiece, The Intelligent Investor is living up to its title as the ‘investment bible’ to date. Being one of the greatest investment minds of the twentieth century, Graham influenced the world of investment with his deep-rooted strategies through this book. First published in 1949, this book is a beautiful exhibition of Benjamin Graham’s thoughtful procedure, which includes his ‘value investing strategy. In addition to this, Graham believed in low-risk dealings and the eradication of emotional facets in investing. Furthermore, the book incorporates footnotes by modern financial journalist, Jason Zweig. Above all, Warren Buffet was himself inspired by Benjamin Graham’s sensational book. He said, “If I hadn’t read the book, I’d probably still be delivering papers”.

A must-read for all the aspiring investors out there, The Little Book Of Common Sense Investing by John C. Bogle focuses on index funds. This book teaches you a foolproof strategy to get the most out of your investment. For instance, long-term holding and low-cost index funds are its most important lessons. The 2017 edition of the book includes chapters on asset allocation and retirement investing. Most importantly, Bogle’s masterpiece has served the investors well during dumps in the market. Warren Buffet has been all praise for Bogle. He said,  “If a statue is ever erected to honor the person who has done the most for American investors, the hands-down choice should be Jack Bogle.” In addition to this, the book stresses the creation of a low-cost diversified portfolio and ignoring market fads and hype.

Matthew R. Kratter’s ‘A Beginner’s Guide To The Stock Market’ is a one-stop solution to all the problems beginners face in entering the stock market. So, if you are someone who is fascinated by the stock market and want to try your luck with it, this book is a must-read for you. Above all, this book covers all the aspects a beginner needs to learn about the stock market, including the process to create an account and buy stock. Moreover, it mentions the common mistakes made by young investors and the ways to avoid them. 

Morgan Housel in his book ‘The Psychology Of Money’ has gone beyond general assumptions and considerations about financial strategies and investment. As the name suggests, this book revolves around the psychology of money. The way people think, and the influence of emotions and personal ego in financial decisions are the book’s main discussions. The idea behind the book is that people usually don’t make business decisions on calculators or spreadsheets. Instead, they make life-changing decisions at the dinner table, or in a meeting room with the presence of their ego and pride. Moreover, the book consists of 19 short stories where Housel teaches the reader to use the best of his senses while making decisions.

 “Saving is the gap between your ego and your income”. (Psychology Of Money)

Manager of Fidelity Magellan Fund, one of the most successful mutual funds, Peter Lynch in his book ‘Beating the Street” highlights the essentials to create a foolproof investing strategy. Lynch stresses self-research to create a profitable portfolio. Stocks perform when the company performs, so when you invest in the right stocks with proper research, you get more returns. In this book, Lynch explains his mutual fund strategy step by step with minute details. According to the author himself, “Know what you own, and know why you own it”

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