I was reading a blog and it had a list of books every investor should have. I read it and I was really impressed. I always love reading books because it expands my thinking and my mind. I get to know better ways to doing things, not only in business but life in general. So I picked my best three and I will give them to you.
1. One Up on Wall Street, By Peter Lynch
The subtitle of this book tells it all: How to Use What You Already Know to Make Money in the Market. In One Up on Wall Street, Fidelity Investments legend Peter Lynch uses an easy-to-follow approach to show readers that you, too, can make money in the market without having a fancy degree and having investment expertise. Learning to read company financials is certainly a mind blowing experience, but Lynch goes straight to the point and teaches you what you need to know. His book shows readers that all you have to do is invest in the companies and products you already use and know.
2. The Intelligent Investor, By Benjamin Graham
Even the legendary Warren Buffet opines that Graham’s work is, “By far the best book on investing ever written.” And the book written in 1949, certainly does not disappoint. Although this book is more technical than One Up on Wall Street, its rock solid advice to beginners makes it a must on the bookshelf of any investor or would be investor that is serious in winning in the markets.
Graham is interested in what he calls “value investors,” who aren’t into speculation or day-trading, but rather willing to learn about stock investing from the bottom up, and follow a well-rounded and consistent investment strategy. His book is very different from other investment books, mainly because his approach is about limiting losses more than maximizing profits. That’s counter-intuitive advice for many.
3. How to Make Money in Stocks, By William J. O’Neil
Although this book is more technical than the first two books, “How to Make Money in Stocks” lays out a seven-step plan, for minimizing risk and maximizing gain. Stock charts are not an easy read. Full of lines, numbers, and information, stock chart reading and the rest is normally reserved for the savvy investor. However, with the help of this book, you can learn how to spot profitable trends in charts. Also, this book is not just about stock investing — there’s also a thorough discussion on how to use the teachings to score deals in mutual funds and exchange-traded funds (ETFs).
O’Neil’s information is not for the feeble minded, and it will take some time of reading through over again to really digest and understand his teaching. His book is very specific but will turn you into a great investor.
There you have it. My Top three books for every investor.