Best Investment Book For Beginner Investors – As young adults and professionals, it is important to understand the ins and outs of investing because long-term investments will enable you to earn greater profits in the future.
However, while investing early is very important, surely investing wisely also has to be done.
To be able to invest wisely then you must have an experience. Experience is the greatest teacher for investors, but it can also be a very expensive way of learning.
Compared to having to learn by trial and error, reading books on investing can be a more effective way to learn, at least the fundamentals of it, because reading a book allows you to benefit from the experience of others.
For that, here are 5 recommendations for best investment books that can provide much-needed business and financial insight for young investors:
5 Best Investment Book Recommendations For Beginners Investors
1. “Rich Dad, Poor Dad” (2000) by Robert Kiyosaki
The first best investment book recommendation on this list may have been known to you for a long time. This book is a must-read for young investors. In this book, Kiyosaki holds that the poor and middle class work for money, but the rich work to learn.
He stressed the importance of understanding financially, and how to achieve financial freedom as the ultimate goal.
Kiyosaki points out that although accounting is important to learn, it can sometimes be misleading. Today’s bank provides the convenience of owning a home as an asset to every individual, but due to the payment required to repay it, sometimes the bank becomes a big responsibility and becomes very disturbing in the cash flow playback.
According to Kiyosaki, the real asset should be an asset that adds income instead of reducing revenue.
2. “The Essays of Warren Buffett: Lessons For Corporate America” (1997) by Warren Buffett
In his essay, Warren Buffett is widely regarded as the most successful modern investor giving his views on important topics for American companies and shareholders.
Young investors can catch a glimpse and learn about the management of the company and its shareholders, as well as the thought processes involved in increasing the company’s value.
Essay Buffett also includes discussions on corporate governance, finance, investments, alternatives to common stock, mergers and acquisitions, accounting and valuation, accounting policies, and tax issues. Buffett outlines his basic business principles.
In this book Buffett advocates the purchase of a business share at a time when stocks are trading at a discount, he opposes following investment trends.
3. “Beating the Street” (1994) by Peter Lynch
Peter Lynch is one of the most successful investors in the stock market. He began his journey as an intern at Fidelity Investments in the mid-1960s.
Nearly 11 years later, he was assigned to manage the Magellan Fund, which at the time was close to an $ 18 million asset. By 1990, the fund had grown to an $ 18 billion asset with nearly 1,000 stock positions. During this time, the fund booked an average yield of more than 29% per year.
“Beating the Street” lets readers take a peek into Lynch’s thinking in deciding whether to buy or sell shares. Lynch believes that individual investors can take advantage of better market opportunities than Wall Street, and encourage investors to invest in what they know.
4. “The Intelligent Investor” (1949) by Benjamin Graham
This book was written in 1949 and has been praised by Warren Buffett as the best investment book ever written. Benjamin Graham is regarded as “the father of high-value investments”.
The paradigm in this book advocates the purchase of shares whose prices are below their relative to their inherent value, determined by fundamental analysis.
Graham explores the history of the stock market and informs the reader to perform a fundamental analysis of a stock. He discusses various ways to manage your portfolio including a positive and defensive approach.
He then compared the stocks of several companies to illustrate more clearly the points intended.
5. “Think and Grow Rich” (1937) by Napoleon Hill
Think and Grow Rich “sold over 30 million copies worldwide. In this book, Hill conducted extensive research based on her relationship with the rich people during her lifetime.
At Andrew Carnegie’s suggestion, Hill published 13 principles for the personal success and achievement of his observations and research. This includes desire, faith, special knowledge, organized planning, perseverance and “sixth sense”.
Hill also believes in brainstorming against like-minded people, whose efforts can then create synergistic energy. This book will provide valuable insight into the psychology of success.
Well, here are some book recommendations that you must read to increase knowledge about how to invest.