Warren Buffett spends 80% of his workday reading. I know that as the CEO and chairman of Berkshire Hathaway (NYSE: BRK-A), he may have a little more control over his workday than you or I, but his commitment to continually replenish his vast wealth of knowledge is one that every investor would appreciate. should pursue. Whether or not it’s during your 9 to 5 work day, reading should be the number one tool in your arsenal. Alphastocks has made a list of the best investment books, all of which will make you think like a successful investor.
Best investment book: One Up On Wall Street by Peter Lynch
This book is the cornerstone of many successful investors. The three main principles of the book are:
- investment opportunities are everywhere;
- buy what you know;
- hold on for the long term.
Lynch writes from his own personal experience. He was an intern at Fidelity Investments and has grown a small mutual fund, the Magellan Fund, from $18 million to $14 billion in 23 years. With an average annual return of almost 30%, the Magellan Fund was the most successful mutual fund in the world. One Up On Wall Street’ is a must for anyone considering starting stock buying. Lynch’s story provides a perspective free of intimidation and fear. His easy explanation of the stock market for the small private investor is something we at Alphastocks also try. No difficult jargon. We truly believe this is the best investment book to start your journey with.
Alphastocks’ favorite quote: “Know what you own, and know why you own it”
Best Money Management Book: The Psychology of Money by Morgan Housel
If you’ve read any of Morgan Housel’s work, you know that he is one of the most accomplished money managers in the world.
While many finance books feel dull and drowned in numbers and charts, Morgan Housel’s first book is one of the easiest and most relatable books on managing your wealth you can find. Summarized in a compact 20 lessons, Housel takes relevant real-life experiences and puts them in an insightful twist, while also distinguishing between terms that may not seem so different on the surface – wealth vs wealth, rational vs reasonable, compensation vs. fine.
If you had to read only one money management book for the rest of your life, this would be it. Easy to read, enjoyable and insightful, there is no one who does financial management better than Housel.
Alphastocks’ favorite quote: “Good investing isn’t necessarily about making good decisions. It’s about not screwing up consistently.”
Best Value Investing Book: The Intelligent Investor by Benjamin Graham
The great Warren Buffett dubbed ‘The Intelligent Investor’ as “the greatest book on investing ever written”.
With its grandiose nicknames like “the father of value investing” and “the dean of Wall Street”, the name Benjamin Graham is well known and loved by most successful investors, as witnessed by Warren Buffet’s rave review. The Intelligent Investor’ applies a common sense approach to the stock market that still applies today, 70 years after it was first published. Updated for the modern age by Jason Zweig of the Wall Street Journal, “The Intelligent Investor” is an excellent first investment book for anyone looking to embark on their investment journey.
To give you a taste, here are Graham’s six key principles of Intelligent Investing:
- Know the company you are investing in.
- Know who runs the company.
- Invest for long-term gains, not quick buy-and-sell gains.
- Choose investments for their fundamental value, not their popularity.
- Always invest with a margin of safety.
- Have faith in your own analysis and observations.
Alphastocks’ favorite quote: “People who invest earn money for themselves; people who speculate make money for their brokers.”
Hopefully these three very suitable books about investing will help you. If readers like this article, Alphastocks plans to make a part 2! If you have found the perfect stock, then you need a reliable and cheap broker! Most shares can be bought at low cost from DEGIRO or BuxZero.
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