6 books on investing you must read

We have constantly read that the proven way of achieving financial freedom is to let your money work for you. How? By the power of compounding. We often have the misconception that to get rich, they have to work hard and save as much as they can. Of course that is crucial but saving money itself will no longer be enough. It may be for that dream vacation, early retirement, or that new car. Whatever your goals are, the one certain way to achieve that is to begin investing.

The earlier you start, the better of you will be. While it is important to invest early and wisely in the stock market, it is essential that you invest in yourself. Investing is only risky when you do not know what you are getting yourself into.

Here are 6 books on investing that I find interesting:

The Intelligent Investor by Benjamin Graham

The concept that the books tried to convey is to purchase stocks that are below their intrinsic value (under-priced) which is determined through fundamental analysis. The author, Benjamin Grahan is considered the father of value investing. Warren Buffet, the chairman and CEO of Bershire Hathaway had praised ‘The Intelligent Investor’ as the best investing book ever written. If you have no idea who Warren Buffet is, he is one of the world most successful investor which had a net worth of USD15, 000 when he was 15 and now worth USD73 billion.

Graham also look into the history of the stock market, discuss on how you conduct fundamental analysis on stocks, as well as discussing on various ways of managing your portfolio that suits your lifestyle and appetite. Whether you are just starting out or have been investing for some time, this book is a definitely must read.

You can find the book on Amazon: The Intelligent Investor

The Little Book that Beats the Market by Joel Greenblatt

As impossible as it looks, Joel Greenblatt, a portfolio manager and professor, whose investment firm has averaged 40% annual returns for over twenty years, can show you how. In fact, the book will show you how it’s possible to more than double the annual returns of the stock market averages.

The book aims to show you that you are able to do it all by yourself, with low risk, just following a time-tested proven step that uses common sense and two simple concepts

If you are looking to achieve extraordinary long-term investment results with a very low-level of risk, follow the clearly outlined simple steps and magic formula.

You can find the book on Amazon:The Little Book that beats the market

Common Stocks and Uncommon Profits by Philip Fisher

Broadly respected and known, Philip Fisher is one of the most influential investors of all time. His investment philosophies have been studied and applied by today’s financiers and investors. This book is an invaluable reading and has been since it was first published in 1958.

The updated version retains the investment wisdom of the original edition and includes the perspectives of the author’s son Ken Fisher, an investment guru in his own right in an expanded preface and introduction. One of the highlight of the book obtained by using Phil’s techniques on understanding a company’s business enables one to make intelligent investment commitments.

You can find the book on Amazon: Common Stocks and Uncommon Profits

Why Stocks Go Up and Down by William Pike

An in-depth introduction to stock and bond investments. What is great about the book is that the author assumes the reader has no prior background. It covers in narrative form with illustration of the fundamentals of financial statements, financial ratios, primary and secondary offerings, price/earnings ratios, commonly misunderstood terms such as “capitalize”, “equity”, “cash flow”, “diluted earnings” and more.

The book is definitely a must read as it cover things in-depth. A good place to start on the nuts and bolts.

You can find this book on Amazon: Why Stocks go up and down

Bull: A History of the Boom and Bust, 1982-2004 by Maggie Mahar

One of the best book ever written on the market’s historic run, which started in 1982 and ended in the early 2000’s. Mahar reminds readers that euphoria and blindness are a regular part of bull markets — lessons we should have learned from studying history.

This inside look at that 17-year cycle of growth, built upon interviews and unparalleled access to the most important analysts, market observers, and fund managers who eagerly tell the tales of excesses, presents the period with a historical perspective and explains what really happened and why.

You can find this book on Amazon:Bull: A History of the Boom and Bust

Rich Dad Poor Dad

Rich Dad Poor Dad is not a book that teaches you on investment but a great book on the importance on financial independence. It is written by Robert Kiyosaki where he share his childhood upbringing, education, business and investment ventures. It outline the differences in the attitudes of two different men (dad as an illustration) on money, work, and how they approach life which ultimately shaped him as person.

In this book, it clearly shows you how the rich approach life differently compared to the poor. It explodes the myth that in order to get rich, you need a high income. Robert explains how the rich let money work for them whereas the poor work hard for money.

You can find this book on Amazon: Rich Dad Poor Dad

I would just clarify that I am not an expert in investing nor am I am anywhere close to financial freedom. This is merely books which I find interesting to read. From the 6 books listed, I have personally read Rich Dad Poor Dad and The Intelligent Investors.

 

Leave a Reply

Your email address will not be published. Required fields are marked *