Whether you are an experienced investor or have just set off with your first investment plan – these note-worthy books bring you the insight of investors who have excelled in life. Simple to understand, informative and easily available in the market – easily enhance your investment knowledge with these.
1. Five Rules for Successful Stock Investing – Pat Dorsey
Based on the philosophy that 'investing should be fun, but not a game," this book provides a comprehensive financial guidance to building wealth and winning in the market.
In many aspects of life, past record has a lot of predictive value. Many investors look up financial numbers to zero in on the best stocks, but in the book, Pat Dorsey says that past performance often does not translate into great results. But how do some companies manage to remain profitable and protect their market share against competition? The answer lies in their ‘economic moats.’
Besides emphasising the use of economic moats as a criterion for stock selection, the book reveals how to read the most important financial statements: balance sheets, P&L accounts and cash statements. It comprises unparalleled stock research and investment strategies covering a broad range of topics:
- How to find great companies that create shareholder wealth
- How to dig into a financial statement and find hidden gold (and deception)
- How to analyse every segment of the market, from banks to health care, etc
Whether you are a new or an experienced investor – the book will help make your investment approach strong.
2. Finding the Next Starbucks – Moe Michael
‘Finding the Next Starbucks’ basically focuses on how to spot companies in their early growth phase, theoretically enabling people to invest at the IPO or shortly after in companies like Home Depot, eBay, Dell, Google, Starbucks, and so on. In other words, it focuses on finding companies early in their growth curve. Easy to understand and inspiring, this book packs a jolt of high-test investment advice. It identifies market trends and investment strategies that encourage you to get rich gradually.
In this book, Moe writes about the 4 Ps that help him come to an investment decision: people, product, potential and predictability. He also includes interviews with some of the biggest names in the business, like Howard Schultz, Bill Campbell and Michael Milken, who reveal their own insights into how they discover the companies of the future.
3. The Essays of Warren Buffett - Lessons for Investors and Managers –
Lawrence A. Cunningham / Warren E. Buffett
‘The Essays of Warren Buffett’ is a worthy read since it helps you learn from the very best - Warren Buffett. In this book, Buffet shares his knowledge and experience of investing. Broad in scope and deep on wisdom, this book explains Buffett’s principles on ‘sound investing’, ‘valuing businesses,’ ‘financial information profitably,’ and other vital topics for investors. The book comprises his letters to shareholders in his company arranged into a series of chapters covering themes like valuation and accounting, mergers and acquisitions and investment alternatives.
Though the letters were written over more than 30 years, Buffett’s thinking has been remarkably consistent. There’s a clarity of purpose, modest humour, and decency that runs through them. If you imagine a big-time investor as Gordon Gekko from the film Wall Street, Buffett is a polar opposite of this image. This book is impactful, and yet, a light read. New and experienced readers alike will gain priceless informal education by reading this classic from Mr. Buffett.
4. The Intelligent Investor – Benjamin Graham
‘The Intelligent Investor
’ is a widely acclaimed book on value investing. Written by one of the greatest investors and economists – Benjamin Graham, the book aims at preventing potential investors from substantial errors and reveals strategies to achieve long-term investment goals.
Interestingly, this book takes a different approach from other investing books. It won’t tell you how to make millions; but will rather tell you how not to lose your wealth. It will help you understand the difference between 'investing' and 'speculating,' and realize that most so-called investors are actually speculators.
‘The Intelligent Investor’ is a great book if you aspire to build wealth early in life. With positive encouragement, it not only helps you get started with investing; but also helps you keep going for a long time.
5. A Random Walk Down Wall Street – Burton Gordon Malkiel
‘A Random Walk Down Wall Street’ is among the modern classics on stock investing. It is an imperative look at what most people say about the stock market – and why a lot of it is potentially junk. In this book, Burton accentuates the benefits of long-term investments rather than get-rich-quick schemes. He further tells you how to predict prices and avoid common mistakes. If you have any interest in how the stock market works, you should definitely read this book. Simple in language, and informative, the book is presented in a way that’s easily digestible.
6. Thinking, Fast and Slow – Daniel Kahneman
Beating the market is very difficult, and most investors are incapable of doing it. Through this book, Daniel Kahneman shows you the way to confidently beat the market. The core of the book is about how our brain consistently makes systematic mistakes. It addresses something any investor ought to care about deeply – how humans make decisions.
In this book, Daniel Kahneman also speaks about his strategy of ‘regret-proof’ investing and how to strike a balance between wealth maximization and regret. In short, it illustrates time and again that when it comes to investing, your brain is not always on your side.
7. Only Investment Guide You'll Ever Need – Andrew Tobias
This book offers tips and guidance for those with limited capital. With frank, easy-to-understand, humorous language – this book has educated millions of readers to date, as to how you use your money to your best advantage – no matter how little or how much of it you have. The book teaches you:
- How to spend wisely and save more
- When and how to invest in stocks
- The ins and outs of investing on the Internet
- Tax strategies until retirement phase
- Whom you can trust to manage your money, if anyone; and much more
This book is funny and incredibly readable. Don’t buy it if you want a handbook guide for investing, but if you want to learn a little bit about investment while being entertained with some great anecdotes and storytelling. That’s really the strong point of this book.
The books listed above are available on all prominent online and offline bookstores.
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