The Best Books On Investing
One of the stand out habits of almost all of the best investors in the world is voracious reading. Ask them if you could and most will give you the same response. This goes a long way in showing that reading has a great correlation with success. Ff you are going to be a successful investor then you must put dedicated a chunk of your time to reading and learning. You could almost say that books are more important to an investor than even the capital he seeks. Embedded in them is the information he requires to turn his capital into long term profits.
As much as it is important for young folks to get investing as early as possible(the earlier you begin, the quicker you can retire), it is equally expedient that they avail themselves to the wisdom they can gain from other peoples experiences. These experiences read in books ensure that they do not make the same mistake others have made. Warren Buffet, for example, was said to read 1,000 pages a day when he was first starting to learn. Ben Graham read so much that he translated a whole Spanish novel to English.
In this article, I have compiled a few books which are seen as the backbone of several successful investors today. There are over a million investment bestsellers, so it is important that you do not restrict yourself to this list alone.
1. Rich Dad, Poor Dad by Robert Kiyosaki(2000). This is a classic that is on the book shelf of almost every successful investor. In this book, Kiyosaki exposes the reader to his own view of the divide between the rich and the poor, stating that the poor work to earn money while the rich work to learn. Furthermore, he emphasizes the importance of financial literacy as the major key to financial independence, something that has somehow eluded about three-quarters of the world’s population. The writer then states that the educational systems, using his resident country America as a case study, prepares kids for a life of continuous work rather than educate them on how to create wealth from investments. He explains that understanding finances goes beyond learning accounting in school to understanding real life vocabulary and how they apply to everyday investments.
2. The Essays of Warren Buffet by Warren Buffet (1997). In this culmination of essays, the writer considered by many to be the most successful investor of his day exposes the reader to several topics relating to corporate America and shareholders. He highlights the interface between the shareholders and the companies as well as the series of processes involved in improving a company’s enterprise value. The essays include several discussions like tax matters, mergers and acquisitions, accounting policies, accounting and valuation, investing, finances, corporate governance and more. Most of all, Warren Buffet explains his own recipe for successful investing over the years, making young readers have access his own investment secrets which will definitely provide skillful guidance to anyone who wishes to follow suite.
3. The Intelligent Investor by Benjamin Graham (1949). Popularly recommended by Warren Buffet as the best book on investing ever, this book might seem old but its values are still extremely relevant to this day. The writer is considered the “father of value investing.” The book teaches the reader the perks of the stock market, how to analyze stocks, and the basic history of the stock market. He gives an in depth explanation as to how to properly manage portfolios and then compares the stocks of several companies to back up his point.
4. Think and Grow Rich by Napoleon Hill (1937). Written during the great depression, this book has since sold over thirty million copies and still counting. Based on several research studies conducted by the writer on the lives and principles of several successful investors, the book provides immeasurable insight into the psychology of success of such individuals as well as their living principles. It emphasizes that these investors were successful because of simply experience and knowledge in the field.