Top 3 Investment Books For Beginners
"You can learn investing by reading books" - Ben Ackman.
There are a plethora of books that are available on investing. It is quite natural for you to feel to begin your investment but not know how. With each title and author adding to your confusion, here is a list of 3 books you can read as a beginner.
"The Essays of Warren Buffett: Lessons For Corporate America" (1997) by Warren Buffett
This book is credited with the title of the New Testament of value investors. Written by the most successful investor of modern times, it a vast variety of topics. As a young investor, you can get a glimpse of the interaction between the company and its shareholders. It also presents the thought process to enhance a company's enterprise value. His essays include topics such as finance, investing, corporate governance, accounting, valuation, mergers, acquisitions, and tax matters among others. Buffet has been writing these essays for more than 50 years now. His clear prose and direct language are sure to keep you hooked and wanting for more.
"Rich Dad, Poor Dad" (1997) by Robert Kiyosaki
This book has been a classic read since the time it was first published in 1997. Stemming out of Robert Kiyosaki's own life where grew up with two dads and two philosophies. Each of it led to two different outcomes, which ultimately became an experience he shares with all the young investors. The book gives readers and investors a contrasting perspective and aims to offer a new view of money. He points out that while accounting is important, financial literacy and financial independence needs to be the ultimate goal. According to Kiyosaki, stocks and real estate that provide dividends are favorable for investors. He also puts an emphasis on tax planning as an integral lesson every investor must take.
"The Intelligent Investor" (1949) by Benjamin Graham
Written by the 'father of value investing' himself, Benjamin Graham was the most influential investing face of the 20th century. Warren Buffet hailed this book as the best investment book ever written. In this book, Graham asks the investors to conduct a fundamental analysis of a stock. He provides various ways in which one can manage his portfolio and gives multiple examples to validate this. He treats the market as a business partner who's price makes sense at some times but can be way too high or low at other times. He also stressed on having a margin of safety. This allows profit on the upside and saves you from losses when things don't work out. Buffet developed his own strategy of investing but also said that no one ever lost money following Graham's ways too.
Top 3 investment books for beginners (IG content)
You can't learn Investment by losing your money
Read books to learn from the masters themselves
1. Essays of Warren Buffet
A good investor must focus on good businesses, buy them at good prices and hold them for the long term.
A good investor must be able to make a distinction between market price and intrinsic value.
Investors must be willing to 'look-through-earnings' which can credit better retained and distributed profits.
2. Rich Dad, Poor Dad
The rich don't work for money but learning. Hence, they invest money.
Financial literacy is important and can lead to independence.
Knowledge of tax and accounting is important for manipulating it to one's advantage.
3. The Intelligent Investor
If you want to make money, you must think long term.
Be interested in fundamentals and have patience. It will pay one day.
Diversify your assets and have a margin of safety.
To sum it up
Investment is not a gamble. So, if you are investing for the first time, trust those who have done it before and you may do just fine.
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