Like a shady Banyan tree standing firm on the strength of its deep roots, a successful investing career stands on a strong base of knowledge. It is near impossible to come out unscathed from a wrong investment decision taken without proper knowledge of financial markets. The internet has become the most reliable source of information for investors these days, which has led to many people taking important calls based on half-baked theories. Reading short articles on the internet can give a broad view of financial markets, but a book provides in-depth analysis and helps in developing an investing strategy. Even the greatest of investors swear by books and consider reading a prerequisite to be a successful investor. Here is a list of 10 books on investing that should be in every beginner’s must-read list.
The Intelligent Investor by Benjamin Graham
If you are thinking of investing, the chances are that you must have already heard of this book. The book brought the concept of value investing to the forefront. Graham was a proponent of loss minimization rather than profit maximization. The strategy proposed by the book is fit for long term investors, who use rigorous analysis and years of experience to take prudent financial calls. Some of the most successful investors, including Warren Buffet, consider it to be the best book on investing.
Stocks For The Long Run by Jeremy Seigel
Somewhat apparent from the name, the book takes the help of history to put forward an argument in favour of holding stocks for a very long tenure. Seigel argues that if you invest in a diversified portfolio for a long time, it can surpass returns from physical assets even after adjusting for inflation. The important lesson from the book is that stocks are the safest and the most productive form of investment in the long run.
A random walk down Wall Street by Burton G Malkiel
A believer of the efficient markets theory, Malkiel argues it is difficult to beat the market and backs his argument with statistics and data. The language is engaging and simple and Malkiel has consciously stayed away from using jargon and complex terms, which makes it a perfect option for beginners.
Rich Dad Poor Dad by Robert T. Kiyosaki
The book is based on the simple premise of starting early. Kiyosaki very convincingly argues in favour of financial independence and highlights the different attitudes towards money, work, and life. Based on the author’s personal experiences as a child, the book preaches investing early in life. A parallel can be drawn between some arguments in the book and financial literacy in India. People in the country do not give serious thought to investing even in their 30s. Directly investing in equity markets could be tricky, but investing in mutual funds could be the solution. The advent of Systematic Investment Plans has made things simpler. You can develop a detailed financial plan by going through portals like Finserv MARKETS and also choose from a plethora of available options.
Source: P C Marddaraj on Medium
The Essays of Warren Buffett: Lessons for Corporate America by Warren Buffett
Often counted among the greatest investors of all time, Warren Buffet provides his views on corporate governance, investing, finance, accounting and acquisitions among several other things, in the book. The book picks the best parts of numerous letters written by Buffett to the shareholders of his company. The book contains important insights from Buffett and could change the way one looks at stocks and investing.
One Up on Wall Street by Peter Lynch
Coming from an extremely successful investor, the book grabs a reader’s attention through the simplicity of Lynch’s argument. He urges investors to use their inane knowledge to achieve success in the stock market. An informative book, with an engaging narrative and a smattering of witty remarks, it grabs a reader’s attention from the very first page.
How to Make Money in Stocks by William O’Neil
A comprehensive guide to success in stock markets, this book has been a bestseller. William talks about strategies to pick winning companies, the mistakes to avoid while investing and Steps to maximize gains and minimize risks. It also discusses the benefits of investing in mutual funds, exchange-traded funds and stocks.
Think and Grow Rich by Napoleon Hill
Written during the Great Depression, this book is centred on the psychology of success. The book is based on Hill’s research based on his association with wealthy people during his lifetime. It contains 13 principles for success and personal achievement.
When to Sell by Justin Mamis
Participating in stock markets is all about the timing, and Mamis very succinctly discusses the indicators to understand the perfect time to buy and sell. Mamis excellently explains how to sell stocks at the right time to maximise profits. A must read to understand how the professionals benefit from the herd mentality demonstrated by common investors.
Stock Investing For Dummies by Paul Mladjenovic
The unique selling point of the book is its simplicity and way Mladjenovic has used real-life examples to drive home his points. The book considers the reader to be a beginner and explains the most basic of concepts in detail. It covers almost everything you would need to understand the basics of stocks, trends, buying and selling, brokerages, numbers and some financial analysis.
Financial health is as important as physical health, but we often ignore the former. Think of planned investments can as the workout for financial health and good books as the equipment. This is not an exhaustive list but will be more than sufficient to get started with investing. However, not everyone has the time to read and apply the concepts propagated by the authors. Leaving the hard-work on professionals and investing in mutual funds is a better option for them. Finserv MARKETS provides you the convenience of reading about financial products like mutual funds, choosing and then buying it, all on a single portal. Visit our website today, get information on Mutual Funds and make a smart investment decision!
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